Senate passes bill to subsidize US-made semiconductor chips

The Senate passed a bipartisan bill that would provide $52 billion in subsidies to domestic semiconductor manufacturers and invest billions in science and technology innovation, in a bid to strengthen the United States’ competitiveness and self-reliance in what is seen as a keystone industry for economic and national security. In a 64-33 vote, the Senate passed the $280 billion “CHIPS and Science Act,” the final iteration of a bill that was years in the making. About $52 billion would go to microchip manufacturers to incentivize construction of domestic semiconductor fabrication plants — or “fabs” — to make the chips, which are used in a wide variety of products, including motor vehicles, cellphones, medical equipment and military weapons. A shortage of semiconductor chips during the coronavirus pandemic has caused price hikes and supply-chain disruptions in several industries. The bill also includes about $100 billion in authorizations over five years for programs such as expanding the National Science Foundation’s work and establishing regional technology hubs to support start-ups in areas of the country that haven’t traditionally drawn big funding for tech. The bill next moves to the House, where Speaker Nancy Pelosi (D-CA) has said it has support for passage. President Biden has said the legislation is one of the top priorities on his agenda and called for Congress to get the bill to his desk as soon as possible.