US Legislation has passed CHIPS Act and is preparing semiconductor bill to become law

The United States Legislation is taking a new step where they are planning to clear its last major hurdle by boosting US chip production. The Senate has passed the bill to boost US chip manufacturing.


The Bill


CNBC reported, “The bill, known as the CHIPS-plus or Chips and Science Act, passed in a 64-33 vote. It will now head to the House, where lawmakers hope to pass it and send it to the White House for President Joe Biden’s signature before Congress leaves town in early August.” House Speaker Nancy Pelosi, D-Calif., said the chip bill “is a major victory for American families and the American economy” when it passed a key Senate vote earlier in July.


The production


CNBC has also talked about the production of the Chips by various companies producing computer chips. They said, “The package includes more than $52 billion for U.S. companies producing computer chips, as well as tax credits to encourage investment in chip manufacturing. It also provides funding to spur the innovation and development of other U.S. technologies.”


Benefit for chips production companies


According to Engadget, “Earlier approaches drew objections from both sides of Congress. Republicans were concerned the reconciliation bill would include unrelated climate, health and tax elements. They also said it risked funding Chinese manufacturing. Independent Senator Bernie Sanders, meanwhile, has expressed concerns the bill might reward chip manufacturers already rolling in cash, and was the only non-Republican in the Senate to vote against it.


The CHIPS and Science Act isn’t expected to affect production in the short term. It will take companies years to build new factories and otherwise upgrade facilities to tackle chip shortages and improve manufacturing independence. If things play out as its supporters imagine, however, CHIPS will hopefully decrease the severity of future supply chain crunches.”