The US Senate has finally resolved to move in line with a law that provides billions of dollars in subsidies and tax credits for US semiconductor manufacturing. In its current form, the CHIPS Act is a reduced version of the bill introduced last year, Stuck in Congress (Opens in a new tab) (The name is to create a useful incentive to produce semiconductors for American law, but it’s definitely a bite). It looks like this new iteration of the CHIPS method may pass by the end of the month.
Details of the confirmed invoice are not disclosed (via) Reuters (Opens in a new tab)). Nonetheless, the bill is reported to provide US semiconductor companies with over $ 50 billion in subsidies and a 25% tax credit to build chip plants in US soil. The credit itself is estimated to be worth up to $ 24 billion.
The focus of the CHIPS Act is to encourage domestic chip manufacturing. This alleviates supply chain problems and reduces reliance on supply from China and other foreign chip manufacturers. The shortage of chips is affecting the computer, automotive, telecommunications, and high-tech weapons industries.
Intel CEO Pat Gelsinger used Twitter to thank the US Senate for pushing the CHIPS law, saying it was “a big step towards protecting our national and financial security.” Said. Intel recently $ 20 Billion Large Chip Factory (Opens in a new tab) In Ohio.
Intel, along with chip makers such as Texas Instruments and Micron, is in a position to win billions of dollars in subsidies to build more production facilities if the bill is passed. These companies can also use the FABS Act to assist in the payment of manufacturing equipment for these facilities. Intel says it could spend up to $ 100 billion on building at least eight chip manufacturing plants. This seems to be conditional on the success of the CHIPS method.
Companies that design but do not manufacture chips (using partners), such as AMD, Qualcomm, and Nvidia, are technically not eligible for these subsidies. Raised concern (Opens in a new tab) The CHIPS law means that in reality only a handful of companies will benefit.
Since then, Intel and other chip makers have pressured US legislators to pass the CHIPS Act faster than delaying the CHIPS Act in order to avoid manufacturing delays and create jobs.
The bill is likely to pass both the Senate and the House of Representatives by next week, with bipartisan support. But lawmakers are working against time to bring the CHIPS Act to vote. After July 31st, Parliament will be adjourned for a month during the August recess.
Thanks to @ chuckschumer, @ SenatorCantwell, and @JohnCornyn for their leadership in driving CHIPS Act funding through tonight’s vote. There’s still a lot to do, but this is a big step towards protecting our national and financial security.July 20, 2022
