Congress Passes Semiconductor Support Act

Congress Passes Semiconductor Support Act

Congress passed support bill semiconductor manufacturers

Memory integrated circuit manufactured by the South Korean company SK Hynix   Congress Passes Semiconductor Support Act

Act Provides Approximately $52 Billion in Government Subsidies for Semiconductor Manufacturing in the United States

The House of Representatives on Thursday passed a sweeping bill to subsidize the US semiconductor industry. The passage of the bill was a victory for President Joe Biden and his fellow Democrats, who hope to maintain their current narrow majority in Congress in the midterm elections in November.

As a result of the vote, the bill was supported by 243 congressmen, 187 voted “against”. The Democrats were joined by 24 Republicans. The bill has been sent to the White House, where Biden is expected to sign it as early as next week.

The Senate passed a bill supporting bipartisan semiconductor manufacturing on Wednesday. The law provides for about $52 billion in government subsidies for the production of semiconductors in the United States, semiconductors used in the production of a variety of devices – from cars and high-tech weapons to electronic devices and video games. The bill also includes a $24 billion investment tax credit for semiconductor manufacturing plants.

The text of the bill also included a provision for $200 billion over 10 years to advance scientific research in the United States to American manufacturers could compete with China. Congress will still need to enact a separate appropriation law to fund this investment.

Congressman Michael McCall, a senior Republican on the House Foreign Affairs Committee, backed the bill.

“We need to manufacture (semiconductors) in this country, not offshore,” he told reporters ahead of the vote. . “This is vital to our national security.”

The bill has been in development for over a year. In June 2021, it was approved in the Senate with strong bipartisan support, but then work on the bill stalled in the House of Representatives, where Republicans and Democrats argued over whether to include provisions on issues such as climate change and rights violations. people in China.

Republican leaders called for a vote against the bill after Senate Democratic leader Chuck Schumer and Democratic Senator Joe Manchin announced an agreement on Wednesday to pass a bill to fund projects in the health care and clean energy.