On Wednesday, Eastern Time, the White House said that U.S. President Biden will sign the “Chip and Science Act” next Tuesday (August 9) to provide subsidies and incentives for the development of the U.S. semiconductor industry.
After the Senate first passed the bill, the U.S. House of Representatives passed the bill last Thursday. At present, the bill can only be formally legislated after Biden formally signs it.
U.S. critical chip bill to be formally enacted next week
The Chip and Science Act is designed to ease the chip shortages that have persisted in recent years and strengthen U.S. domestic chip manufacturing capabilities.
According to reports, the bill is expected to provide about $52 billion in government subsidies for U.S. semiconductor research and production. The bill also includes investment tax credits for chip factories, worth an estimated $24 billion.
The bill also authorizes $200 billion over 10 years to promote scientific research in the chip industry in the United States. Congress still needs to pass separate appropriations bills to fund these investments.
“This bill will strengthen our efforts to manufacture semiconductors in the United States,” Biden said on Tuesday.
The Ministry of Commerce emphasizes that it will limit the scale of subsidies
Although this bill was passed in the US Congress, some lawmakers expressed concern that some chip companies are already profitable, and the government subsidizes them too much.
On Friday, ET, the U.S. Commerce Department said it would limit the size of government subsidies to semiconductor manufacturing to ensure that they “do not exceed the amount invested in the operation of the project within the United States,” adding that it would prevent “states and Competitive subsidies between localities” and does not allow companies to use these funds to increase their profits.
Progressive Caucus Chairman Pramila Jayapal said the group has expressed concern that chip companies will use the funds to buy back stock or pay dividends, though in a discussion with Commerce Secretary Gina Wray The group backed the legislation after lengthy negotiations at Mundo.
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