The Senate has approved $280 billion in technology spending aimed at increasing America’s semiconductor production and promoting scientific research.
By a vote of 64-33, the U.S. Senate passed the CHIPS bill, a bill that would provide $52 billion in aid funding for research and workforce development grants, along with a 25% investment tax credit for investment in the industry and semiconductor manufacturers looking to launch products in the United States.
Chip makers will be paid $52 billion
The bill, which includes the long-stopped $52 billion payment to chip manufacturers, passed the parliament with a majority vote, following management warnings that time is running out before US companies can attract domestic investments and open stores abroad.
The legislation includes money for research and workforce training, and 5G wireless network technology, in addition to semiconductor funding. Among the important provisions in the package;
- $39 billion financial aid to build domestic semiconductor plants
- $11 billion to fund chip research and workforce development
- $2 billion for defense-related chip manufacturing
- Restrictions on the use of funds for share repurchases, foreign investments
- 25% investment tax credit for the manufacture of vehicles to create semiconductors
- $500 million for the international secure communications program
- $200 million for employee training in the semiconductor industry
- $1.5 billion for public wireless supply chain innovation
- Modification of funding and authorization of programs at the National Space and Aviation Administration, the National Institute of Standards and Technology, the National Science Foundation
- Allowing new programs within the Energy Department
Biden: We will be ahead of China
Regarding the law, which aims to strengthen America’s competition with China, President Biden said, “For decades, some experts have said that we should give up chip production in America. I never believed this. Production business is back. Thanks to this law, we will have more of them.”
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