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US Senate Passes CHIPS Act, Moving Closer To Win For US Chipmakers
The U.S. Senate approved sweeping legislation to subsidize the nation’s semiconductor industry by a two to one margin Wednesday. ‘There are only winners in this strategic investment by the government,’ one solution provider executive previously told CRN.
The U.S. Senate approved sweeping legislation to subsidize the nation’s semiconductor industry by a two-to-one margin Wednesday.
Lawmakers greenlighted the CHIPS Act, a $280 billion spending package that would boost spending on science and American chipmaking amid supply chain constraints. The House of Representatives is expected to pass the measure this week. President Joe Biden had pledged to sign the bill.
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Proponents say CHIPS will provide ammunition to compete with China and ease the supply chain shortage that has cooled production of chips essential to produce everything from electronic healthcare devices to vehicles.
U.S. Senate Majority Leader Charles Schumer (D-New York) who, along with Biden has championed the statute, said the Senate has taken a giant step toward advancing the historic federal semiconductor incentive, scientific research, and technological competitiveness bill to bring manufacturing back from overseas.
“This bill means lowering costs for families, solving our nation’s chip shortage, strengthening our national security, and bringing manufacturing back from China to Upstate New York,” said Schumer in a statement.
The Creating Helpful Incentives to Produce Semiconductors for America Act is expected to provide grants for semiconductor manufacturing and research, tens of billions to support regional technology hubs and a tax credit covering 25% of investments in semiconductor manufacturing through 2026.
Partners have mostly applauded the federal spending.
Harry Zarek, president, founder and CEO of Richmond Hill, Ontario-based Compugen, lauded the effort as a win for the entire IT channel. “Support for the CHIPS Act is much more than improving our supply chain,” he previously told CRN. “Improving deliveries is a given. There are additional benefits, including simplification of the supply chain by building a fully enabled ecosystem onshore for semiconductors and the enhanced manufacturing capacity it brings back.”
He added, “There are only winners in this strategic investment by the government.”