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US senate bolsters bill to boost the production of semiconductors

  • By Al Mayadeen English
  • Source: Agencies
  • 26 Jul 2022 22:32
2 Min Read

It's believed that such a move will attenuate competitivity with China over the production of computer chips.

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  • US senate bolsters bill to boost the production of semiconductors
    US senate bolsters bill to boost the production of semiconductors

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

Yesterday, US president Joe Biden urged Congress to pass legislation “as soon as possible” that provides $52 billion to support semiconductor production in the US.

The vote was today passed at 64 to 32, moving the bill forward toward passage by the chamber, and the final passage of the bill is expected this week.

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.

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An amount of $52 billion is set to be invested in the industry if the legislation comes to pass.

Another $100 billion will be invested over five years for National Science Foundation work to allow any research and development costs to be immediately deducted through 2025.

Demand for these chips has exploded during the pandemic, resulting in a shortage exacerbated by the closure of factories in China due to the resurgence of COVID-19.

Six months ago, it was reported that American corporations have an average of fewer than five days' worth of semiconductors on hand, putting them at risk of production shutdowns if supply is disrupted.

The shortage has had severe consequences in many economic industries, including the automotive, medical devices, electronics, and energy sectors.

The US has in recent months increased efforts to strengthen technological cooperation with countries including South Korea and Japan to create semiconductor supply chains that bypass China.

Read more: US Treasury Secretary critical of China's 'unfair' trade practices

  • US Senate
  • US economy
  • semiconductors

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