To compete with China, the US Senate passed the Chips and Science Act (CHIP-plus), which funds and stimulates the production of semiconductors in the US, writes CNBC.
As part of this project, $ 52 billion will be allocated from the federal budget for subsidies to American companies producing semiconductors. In addition, manufacturers will be able to receive tax incentives and subsidies that encourage them to develop their business.
A number of Republican senators criticized the bill. According to them, with the help of the document, the Democrats are promoting issues of climate, medicine and taxation. Also, some lawmakers believe that part of the federal funds provided by the law may end up in China.
Next in line is the approval of the law by the House of Representatives.
Even US President Joe Biden reacted. He called the Senate’s decision historic because the bill would reduce US dependence on foreign suppliers, lower electronics prices and create thousands of new jobs.
Here’s why the CHIPS and Science bill that just passed the Senate is a really big deal. pic.twitter.com/MgODo5Jd4D
— President Biden (@POTUS) July 27, 2022
Recall that in March, Intel announced construction of a factory for the production of processors in Germany for $19 billion.