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US House passes $52 billion bill to boost semiconductor production

  • By Al Mayadeen English
  • Source: Agencies
  • 28 Jul 2022 23:03
  • 1 Shares
2 Min Read

This step aims to increase domestic semiconductor production in the US and attenuate competitiveness with China.

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  • US House passes $52 billion bill to boost semiconductor production
    Semiconductors; the microchips that power everything from smartphones to cars and even weapons. 

On Thursday, the US House of Representatives passed a bill to boost domestic production of semiconductors - the microchips that power everything from smartphones to cars and even weapons. 

The CHIPS Act was approved by the House in a 243-187 vote, with 24 Republicans joining Democrats on the agreement - the act will go to US President Joe Biden for his signature.

Biden has, for long, been begging Congress to pass the bill which will increase US competition in tech manufacturing with China. 

He welcomed its approval, saying that it will "lower the costs of every day goods" and "create high-paying manufacturing jobs across the country and strengthen US leadership in the industries of the future at the same time."

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"By making more semiconductors in the United States, this bill will increase domestic manufacturing and lower costs for families," he said. "And, it will strengthen our national security by making us less dependent on foreign sources of semiconductors."

The legislation includes the provision of $52 billion to increase domestic semiconductor production and more than $100 billion over 5 years for research and development. 

The US Senate decided on Tuesday to advance a bill that will increase the local production of semiconductors and increase American competitiveness.

The vote was passed at 64 to 32, moving the bill forward toward passage by the chamber.

Majority Leader Chuck Schumer said on Tuesday in a speech on the Senate floor that “[this legislation] will make historic investments to scientific research. It will take direct aim at our nation’s chip crisis.” 

“I’m confident that future generations will look back on the passage of this chips and science bill as a turning point for American leadership in the 21st century,” he added.

  • US House of Representatives
  • Joe Biden
  • semiconductors
  • China

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