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The US Senate is prepared to review a semiconductor chips bill very soon with the aim to help raise American competitiveness, Speaker Nancy Pelosi said Wednesday.    

The Senate voted by a large margin to start the debate on legislation to give more than $52 billion in grants to the US semiconductor industry.

"With this package, the United States returns to its status as a world leader in the manufacturing of semiconductor chips," she said in a press release, adding that this is "an economic necessity to lower costs for consumers and to win in the 21st-century economy, as well as a national security imperative as we seek to reduce our dependence on foreign manufacturers."    

Aside from initiatives to promote Science, Technology, Engineering, and Math (STEM) research and development, the Chips Act for the US includes what Pelosi called "strong guardrails", including banning firms from using funds awarded through the act for stock buybacks or dividend payments and companies who received federal financial support from engaging in particular expansions of semiconductor manufacturing in countries of concern.

These firms are also requested to inform the Department of Commerce of any plans for significant transactions that may breach the agreement. Congress will keep tight control over federal funds that support the domestic production of semiconductors.  

The Senate held on Tuesday a procedural vote to advance the bill and approve it "as early as next week."

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