The US Senate Passed A Bill To Stimulate The Production Of Chips

The US Senate passed the Chips and Science Act (CHIP-plus), which funds and stimulates US semiconductor manufacturing to compete with China. Writes about it CNBC .

According to the project, $52 billion will be allocated from the federal budget to finance American companies producing semiconductors. The document also provides for additional tax incentives and subsidies to encourage private investment in this sector.

A number of Republican senators criticized the bill. According to them, with the help of the document, the Democrats are promoting issues of climate, medicine and taxation. Also, some lawmakers believe that part of the federal funds provided by the law may end up in China.

Independent Senator Bernie Sanders said that chipmakers do not need additional support. Tech giants are already making super profits, the politician is sure.

The bill must now be approved by the House of Representatives.

US President Joe Biden called the Senate’s decision historic in his address. According to him, the bill will reduce the US dependence on foreign suppliers, reduce the price of electronics and create thousands of new jobs.

The President also called on the House of Representatives to approve the document as soon as possible.

The pending law is unlikely to have an immediate effect, experts say, as new factories will take years to build. In the short term, these initiatives will not solve the current chip shortage.

However, CHIP-plus could play an important role in US technology manufacturing, experts say. In addition to reducing the likelihood of future shortages, it could reduce reliance on Taiwan and other semiconductor manufacturing centers threatened by countries like China.