U.S. President Joe Biden recently announced House lawmakers passed legislation to boost domestic chip manufacturing. )Image Credit: Wikimedia Commons)
Earlier today (July 28th), House lawmakers passed a bipartisan CHIPS-plus bill in a 243-187 vote intended to increase domestic computer chip manufacturing. The legislation includes incentives worth $52 billion for the semiconductor industry. The Senate approved the legislation on July 27th. Biden’s top priority has involved making the US less reliant on China for chip development. He also pushed Congress to quickly act on improving the nation’s semiconductor output, labeling it as a crucial national security and economic issue.
Biden also said the investment helps create jobs and improve the long-term affordability of automobiles, appliances, and other devices developed with the chip. Biden still needs to sign the bill and expects to add his signature as soon as it reaches his office. Companies develop[ing chips in the U.S. could be given a 25% tax break. $200 billion was also approved for scientific research.
The president said that grant money reviews would be provided to businesses investing in semiconductor manufacturing. Businesses misusing the funds would be forced to return them to the administration. Biden went on to say that he signs off the largest grants before being dispensed. Next, the White House will focus on approving legislation to figure out new climate and energy initiatives.
Nancy Pelosi said the bill is a “resounding victory for the American people,” commending investments that expect to “power America’s pre-eminence in both basic research and next-generation technologies.” Rep. Tim Ryan said the bill could “transform the industrial Midwest,” referencing Intel’s plan to fund $100 billion into new Ohio-based factories.
According to Commerce Secretary Gina Raimondo, the country previously developed 40% of the world’s chips. Now it only manufactures approximately 12%. State-of-the-art chips are made in Taiwan rather than in the United States.
Have a story tip? Message me at: http://twitter.com/Cabe_Atwell