US Senate moves chip funding bill to encourage local semiconductor manufacturing – Meczyki.Net

The US Senate on Tuesday voted in favor of the Chips bill (64-32) to boost local semiconductor manufacturing. The bipartisan bill will pave the way for providing about $280 billion in various incentives to build a US-based chip.

The bill, popularly known as the Chip-Plus package, has three major incentives for chipmakers: $52 billion in aid to set up fab and manufacturing units, including $2 billion for legacy chipmaking needed for the auto and defense industries; 25% in tax relief for investments of approximately $24 billion in local semiconductor manufacturing; and a $200 billion grant for research in the field.

A version of the bill passed the Senate last year but was stalled in the House, and now it faces that final hurdle again before the August recess.

The Semiconductor Industry Association, a trade group representing chipmakers with members such as AMD, ARM, Intel and Broadcom, welcomed the Senate vote.

“Today’s bipartisan vote is an important step toward creating legislation that will strengthen American chip production and innovation, economic growth and job creation, and national security. We thank bipartisans of Congress for their leadership in advancing the CHIPS Act. The group thanks the group, applauds today’s Senate vote, and urges speedy final passage in both the Senate and the House. America has a historic opportunity to reinvent domestic chip manufacturing, design, and research and Congress must seize it before it is too late,” it said in a statement.

The US is pushing the bill and making efforts to ramp up local semiconductor manufacturing after the pandemic and global chip shortages affected several industries, including the smartphone and automotive sectors. in an interview with CNBC On Tuesday, Senator Todd Young noted dependence on South Korea and Taiwan for critical chips and said “we can’t depend on countries so far away right now.”

Over the years, several companies have committed to setting up manufacturing in the US, including TSMC, which is creating a $12 billion fab in Arizona. Last year, Samsung committed to a new manufacturing site in Texas with an investment of $17 billion. South Korea’s SK Group, which held virtual talks with President Joe Biden earlier this week, said it would invest US $22 billion for development In areas such as semiconductors, green energy and bioscience projects.