The U.S. Senate on Wednesday passed legislation to support the domestic semiconductor industry with over $75 billion. GlobalFoundries, Intel, Samsung Foundry, Texas Instruments, TSMC, and other companies that build semiconductor manufacturing facilities in the USA will welcome the move.
The U.S. Senate approved the 'Chips and Science' legislation on a 64 to 33 bipartisan vote. The bill authorizes the U.S. government to award U.S. chipmakers with about $52 billion in grants and other incentives and provide a 25% investment tax credit for new fabs worth up to $24 billion. In addition, the legislation provides over $170 billion over the next five years to various scientific research works in the USA, reports
Reuters (opens in new tab).
Now that the Senate has passed the bill, the House of Representatives will review it, which are expected to pass it later this week. After that, they will send it to the President of the U.S., who will sign it and make it a law.
The proposed bill aims to boost the U.S. semiconductor industry, which starts its renaissance with multiple new fabs being built or optioned. It will help alleviate chip supply shortages and help the American economy. Also, it ensures consistent chip supply to companies in the U.S. In addition, the bill will strengthen U.S. scientific research prowess and ensure the country's long-term success in competition with China.
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