US Senate passes a bill to encourage the production of chips

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

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

Some Republican senators criticized the bill. According to them, with the help of the document, Democrats support climate, medicine and tax issues. In addition, some lawmakers believe that some of the federal funds provided by the law may end in China.

Independent Senator Bernie Sanders said that chip manufacturers do not need additional support. Tech giants are already making super profits, politicians are sure.

The bill now needs to be approved by the House of Representatives.

In his speech, US President Joe Biden described the Senate’s decision as historic. According to him, the bill will reduce the US reliance on foreign suppliers, lower the prices of electronics and create thousands of new jobs.

Also President called The House of Representatives will ratify the document as soon as possible.

Experts say the pending law is unlikely to take effect immediately, as new factories will take years to build. In the short term, these initiatives will not solve the current chip shortage.

But experts say CHIP-plus could play an important role in US tech production. In addition to reducing the possibility of future shortages, it can reduce reliance on Taiwan and other semiconductor manufacturing hubs that are threatened by countries like China.

Recall, in May, Samsung announced that it plans to invest $356 billion in artificial intelligence, chips and biotechnology by 2026.

In March, Intel announced the construction of a $19 billion processor manufacturing facility in Germany.