CHIPS Act clears Congress, ensuring $52 billion boost to US foundries - The Verge
The House passed the $280 billion CHIPS and Science Act to strengthen US science and technology innovation. The bill, a Joe Biden administration priority, includes $52 billion in subsidies to encourage chip manufacturers to build out semiconductor fabrications plants, or "fabs," in the US.
It might get cheaper and easier to buy popular tech products, like gaming consoles and graphics cards, after Congress approved $52 billion in funding for domestic semiconductor manufacturing.
In a 243-187 vote on Thursday, the House passed the $280 billion CHIPS and Science Act to strengthen US science and technology innovation. The bill, a Biden administration priority, includes $52 billion in subsidies to encourage chip manufacturers to build out semiconductor fabrications plants, or “fabs,” in the US.
After months of negotiations between the House and Senate, Thursday’s approval resolves the looming threat of chipmakers reconsidering plans to build US plants. Earlier this month, the groundbreaking ceremony for a $20 billion Intel foundry was delayed while the funding remained stalled.
“The American people may not know it, but semiconductors are integral to their everyday experiences,” Rep. Frank Pallone Jr. (D-NJ) said in a Thursday floor statement ahead of the vote. “They are microchips that are used in automobiles, consumer electronics, and washing machines.”
The coronavirus pandemic upended a wide variety of industries, but especially businesses that manufacture products that require semiconductor chips. Demand for tech products, like laptops, consoles, and tablets, skyrocketed as consumers grew accustomed to spending more time at home instead of at school or the office. The confluence of demand and pandemic-related supply chain disruptions spurred a global semiconductor shortage that hardware suppliers, like Nvidia and AMD, are just now beginning to resolve.
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