The US Senate has moved forward the CHIPs bill by voted 64 – 32. The $280 billion package of subsidies and research funding is designed to increase US competitiveness and advanced technology increase semiconductor production in the US. A final vote is expected later this week. After that the bill must be approved by the House.
The bill contains about $52 billion in subsidies to boost semi conductor production along with $24 billion advanced manufacturing tax credits.
It would also authorize about $200 billion for February back to scientific research over the next decade.
After the supply chain issues seen over the last year or so, and realizing the national security implications, moving production to the US has taken on increased importance.
Critics of the package say that it gives the chip industry a blank check despite the fact that they are making billions of dollars. Others argue that the monies could be spread out amongst all industries, and that the precedent will give other industries who are challenged by overseas production, to look for subsidies to move production to the US.
Intel is proposing to build a new $20B fab (fabrication) facility in Ohio (dependent on subsidies), and are currently expanding their fab in Arizona.
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