Chips and Science act passes US Senate, moving one step closer to granting $52 billion to chipmakers

guest · Jul 29, 2022

The U.S. Senate just passed a massive bipartisan bill aimed at spurring domestic manufacturing of chips.
July 28, 2022

What you need to know

The United States Senate just passed the Chips and Science act, which would provide around $52 billion to semiconductor manufacturers in the country.

The bill now has to go through the House of Representatives and then be signed by President Joe Biden, both of which are expected to happen.

The goal of the funding is to promote the domestic making of chips to compete with manufacturing in Asia.

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The United States Senate passed the Chips and Science act on Wednesday, July 27, 2022. The legislation will provide $52 billion in subsidies and tax credits for semiconductor production in the U.S. if it is signed into law. The bill passed through the Senate with a bipartisan 64 to 33 vote. It must now go through the House of Representatives, which is expected to vote in favor of the legislation. President Joe Biden would then sign the law into effect (vai Reuters).
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The Chips and Science act has been in the works since last year. An earlier version of the bill passed the Senate in June 2021 but did not make it through the House.

The $52 billion in funding includes $39 billion to subsidize companies building facilities for manufacturing semiconductors and over $10 billion for semiconductor research.
In addition to the $52 billion in subsidies and tax credits for developing and making chips, the bill will allocate more than $170 billion to scientific research.
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guest · Aug 9, 2022

Biden signs bill to boost U.S. chips, compete with China
August 9, 2022

President Joe Biden on Tuesday signed a landmark bill to provide $52.7 billion in subsidies for U.S. semiconductor production and research and to boost efforts to make the United States more competitive with China's science and technology efforts.

The White House said the bill's passage was spurring new chip investments.
The White House also touted Micron announcing a $40 billion investment in memory chip manufacturing, which would boost U.S. market share from 2% to 10%, an investment it said was planned with "anticipated grants" from the chips bill.
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President Biden signs CHIPS Act to boost semiconductor production

The measure sets aside $52 billion for domestic chipmakers.
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guest · Aug 10, 2022

China calls out US semiconductor bill as anti-competitive
August 10, 2022

China's trade and commerce associations say the US Chips and Science Act is not in line with global trade principles and imposes unfair competition with "any country of concern".
China's trade and commerce associations have described the US government's semiconductor bill as a barrier to global innovation and economic recovery. They further urge business communities to take measures to protect their interests and mitigate the impact of the new bill.

Signed into law on Tuesday, the US Chips and Science Act seeks to boost the country's semiconductor manufacturing industry and pump investment in research and development, science, and technology. It includes $52.7 billion in subsidies and funds aimed at fuelling the domestic manufacturing sector and strengthening the country's footprint in emerging sectors, such as nanotechnology, quantum computing, and artificial intelligence (AI).
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Following US President Joe Biden's signing of the bill this week, various market players have stepped up to announce plans to invest in the local market

According to the Biden administration, these included Micron's $40 billion funds injection into memory chip manufacturing that was projected to create up to 40,000 jobs and push the US market share of memory chip production to 10%, up from less than 2%, over the next 10 years.
Qualcomm and GlobalFoundries also unveiled a new partnership that included plans to invest $4.2 billion in the expansion of GlobalFoundries' New York chip manufacturing site.
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US bill unfair on global competition
China, however, said the US bill would distort the global chip supply chain and disrupt international trade. The Chinese Ministry of Commerce last month said the Act contained provisions that restricted "normal economic, trade, and investment" activities of Chinese market players.
The ministry said it would monitor the implementation of the bill and adopt "strong measures" to protect its legitimate rights and interests.

The new law served to boost the US's advantage in the chip market and triggered unfair competition against "any country of concern", reported state-owned newspaper China Daily.
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guest · Sep 6, 2022

Biden administration reveals details of its $50 billion chip investment plan
Over half of the funding will go toward advanced chip manufacturing.
By Kris Holt @krisholt - September 6, 2022

The Biden administration has revealed details of how it plans to invest $50 billion into kickstarting the US semiconductor industry, a month after President Joe Biden signed the CHIPS and Science Act. The Commerce Department says the funding will "revitalize the domestic semiconductor industry and spur innovation while creating good-paying jobs in communities across the country."

Over half (roughly $28 billion) of the CHIPS for America Fund has been earmarked for boosting production of logic and memory chips in the US using the most advanced processes available. The agency plans to disburse the funds through grants and loans, which will be used to build and expand facilities for making, testing, assembling and packaging chips.
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The agency plans to start accepting applications by early February. It says loans and grants will be provided on a rolling basis, as soon as it can "responsibly" process, evaluate and negotiate applications. Commerce Secretary Gina Raimondo told The New York Times that the department could start releasing the funds as soon as next spring.
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It will likely take a few years before domestic production of chips meaningfully increases, as it will take some time to build or expand semiconductor fabs. The impact of the CHIPS and Science Act, which passed with bipartisan support, could help mitigate any fallout from tensions between the US and China over Taiwan, where more than two thirds of the most advanced semiconductors are built.
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Chips and Science act passes US Senate, moving one step closer to granting $52 billion to chipmakers

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