US Senate OKs new bill to boost domestic chip production

Admin, Thursday, August 11, 2022
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What you need to know

  • The Senate has passed new legislation that seeks to support chip manufacturing in the United States.
  • CHIPS provides $52 billion in support to the domestic semiconductor industry.
  • It also plans to invest more than $170 billion in research over the next five years in order to compete with China.

Various technology sectors have been hit by the current global chip shortage, which has been exacerbated by the ongoing war between Ukraine and Russia and uncertain economic conditions. The Senate now wants to focus on the chip shortage by boosting the domestic US semiconductor industry with a $52 billion subsidy.

That amount was included in the CHIPS bill, which the Senate recently passed after a similar version of the bill, the United States Innovation and Competition Act, which botched in the lower house of the House. The law also includes a provision to pump more than $170 billion into scientific research over five years in an effort to boost competition with China. Reuters (Opens in a new tab) reports.

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