House Passes Chips Act to Boost US Semiconductor Production

The House passed a $280 billion bill aimed at making the US more competitive in the semiconductor industry, despite a late push by Republican leaders to block the legislation over a separate Democratic spending proposal. Twenty-four Republicans joined with Democrats to vote for the bill. One Democrat, Rep. Sara Jacobs (D-CA), voted present. Her family founded chip developer Qualcomm. The Chips and Science Act of 2022 will spend $52.7 billion on direct financial assistance for the construction and expansion of semiconductor manufacturing facilities, as well as other programs. The bill allocates $39 billion for semiconductor manufacturing, but also includes $11 billion to advance semiconductor manufacturing research and workforce training, and a $2 billion fund to more quickly translate laboratory advances into military and other applications. It adds $24 billion in tax incentives and other provisions. Chunks of that funding are expected to flow to rural states under new formulas for distributing research dollars. The legislation also directs the Commerce Department to create 20 “regional technology hubs” designed to create more tech jobs across the country. The technology R&D investments target fields including artificial intelligence, quantum computing, wireless communications and precision agriculture. The National Science Foundation would oversee a new $20 billion directorate focused on accelerating the development of technologies critical to U.S. security, in addition to an increase to $61 billion for its core activities funding researchers at universities and elsewhere. The Energy Department’s Office of Science’s five-year authorization would increase to about $50 billion to boost a series of programs focused on clean energy, nuclear physics and high-intensity lasers. Proponents said the legislation will help the supply-chain woes that have dogged Americans trying to buy cars and appliances that rely on chips, though it could be years before the true benefits of the bill are seen.