The US Senate has passed legislation to subsidies the domestic semiconductor industry, and is hoping to boost the chip producing companies as they compete with China and alleviate the chip shortage that has affected everything from cars to video games and weapons.
The US Senate has passed the long-awaited bill by 64 to 33, and the House of Representatives is expected to approve the bill later this week, which will send it to Joe Biden, the president of the United States, to sign into law.
The Chips and Science act will provide around 52 billion dollars in government subsidies for semiconductor production in the United States, as well as an investment tax credit for the chip plants estimated to be worth 24 billion dollars.
The new legislation will also authorize more than 170 billion dollars for over five years to boost the United States scientific research efforts to better compete with China. The government of the United States would still need to pass some separate appropriations legislation to fund the investments.
Chuck Schumer, democratic majority leader of the US Senate, said this new legislation is going to create good paying jobs, and it will alleviate the supply chains, and it will help to lower costs while protecting the national security interests of the United States.