Senate Advances Over $50-Billion Bill to Boost US Semiconductor Production

BUSINESS

The US Senate voted to advance a new version of its bill designed to boost semiconductor production in the United States. The new bill has cleared a key hurdle in a 64-34 vote even as the lawmakers of the US have worked to finish different sections of the legislation.

The bill, which will provide around 50 billion dollars in subsidies to bolster computer chip manufacturing in the United States, is a multifaceted bipartisan effort that mainly combines the interests of many committees, ranging from economics to national security.

The main aim of the new legislation is to incentivize semiconductor manufacturing within the United States to decrease its dependence on the producers based in Asia. The officials of the government of the United States said a larger domestic chip industry will help ease the disruptions in the supply chain that have hampered the economic recovery from COVID-19 and insulate the United States from routes dominated by the USA’s rival China.

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A shortage of chips across the globe over the past two years has rippled through several industries, including automobile companies, consumer technology companies, mobile phone companies, and defense system producers in the country.

This legislation before the Senate includes 52 billion dollars to rebuild the domestic chip manufacturing and tax breaks to encourage the construction of plants based in the United States. The stocks of the chip producers also increased, with Intel increasing by 3.9 percent, Nvidia by 5.5 percent, and Texas Instruments by 3.1 percent.