Senate Passes $280B Bipartisan CHIPS Act

July 27, 2022 by Madeline Hughes
Senate Passes $280B Bipartisan CHIPS Act
The inside of a computer is seen on Feb. 23, 2019, in Jersey City, N.J. (AP Photo/Jenny Kane, File)

WASHINGTON — The Senate on Wednesday voted 64-33 to pass the $280 billion legislation that aims to rebuild the U.S. semiconductor chip manufacturing industry and create a renewed investment in research and development.

“Future generations will look back on the passage of this bill as a turning point for American leadership in the 21st century and we are paying attention to all of America,” said Senate Majority Leader Chuck Schumer, D-N.Y.

Wednesday’s passage comes after a 64-32 vote to invoke cloture, limiting debate on the measure Tuesday. Now, the legislation advances to the House where Majority Leader Nancy Pelosi has promised a quick vote.

The legislation began life as the Endless Frontier Act in 2020, then became the Innovation and Competition Act, which passed in the Senate but died in the House. This year it became known as the CHIPS Act and Schumer called it the “chips and science” bill earlier this week.

Semiconductor chips are essential in many different types of technology, particularly those with cloud computing capabilities. These chips are in everything from communication devices to cars to medical devices to defense systems and more.

Over the past three decades as the use of semiconductors for those technologies has exploded, chip production in the U.S. has not kept up globally. There’s been a declining share in the global percentage of chips manufactured falling from 37% in 1990 to 12% today, according to the Semiconductor Industry Association.

Disruptions in supply chains, particularly for semiconductor chips, were especially glaring during the pandemic as the car industry and others were hard hit by a lack of chips.

The new investment in semiconductor manufacturing will flood across the country, not only helping the traditional large city tech hubs but also smaller cities.

That includes investing in manufacturing in typically rural states like West Virginia. 

“This legislation not only bets on American ingenuity, but it also authorizes funding that can be utilized by our institutions of higher education in West Virginia, as well as the type of research and innovation at the National Energy Technology Laboratory in Morgantown, Green Bank Observatory in Pocahontas County,” Sen. Shelley Moore Capito, R-W.Va., said in a statement. 

Chip manufacturing gets a significant portion of the funds — $52 billion — with $39 billion going directly to building semiconductor manufacturing plants, and another $11.2 billion to research and development to improve semiconductor technology. Investors in semiconductor manufacturing will also get a 25% tax credit.

There’s also $100 billion for the National Science Foundation’s work to create regional tech hubs that can attract startups that traditionally gravitate towards larger cities.

“We don’t know exactly what innovations will come out of this, but we do know this: America will be more competitive because of this. And we do know this: America will be able to grow our country for the future because of the investments we have made today,” Sen. Maria Cantwell, D-Wash., chair of the Senate Commerce Committee, said prior to the legislation’s passage.

Capito, Schumer and others highlighted how this is vital not only for economic interests at home but to also keep up with foreign governments like China that are investing heavily in semiconductor manufacturing.

This renewed investment is vital, Schumer said.

“For decades it was America’s fierce commitment to scientific research, technological growth and advanced manufacturing that made us the envy of the world,” Schumer said, recalling how this matches up to previous legislation. 

“That funding that we put into science created the greatest laboratories — split the atom, spliced the gene, landed a man on the moon and unleashed the internet. We generated decades of American prosperity and fostered an innate sense of optimism in the American spirit. And we made the world a safer, more hospitable place for our democratic values.”

Secretary of Commerce Gina Raimondo commended the bipartisan work on passing this bill, which she has championed to help reinvigorate the tech economy.

“Our country runs on semiconductors and creating a robust chip manufacturing ecosystem in the U.S. will keep our economy strong, our nation safe, and create high-quality, good-paying jobs in communities across the country. The Senate’s bipartisan vote for this legislation sends a strong signal to American workers, American industry and countries around the world that we’re committed to leading in the 21st Century,” Raimondo said in a statement.

Madeline can be reached at [email protected] or @ByMaddieHughes

A+
a-
  • bipartisan
  • CHIPS Act
  • In The News

    Health

    Voting

    Technology

    March 28, 2024
    by Dan McCue
    Silicon Valley-Based Firm Launches ‘Radar as a Service’

    BELMONT, Calif. — At first the idea sounds about as un-Silicon Valley as one can get. After all, the basic... Read More

    BELMONT, Calif. — At first the idea sounds about as un-Silicon Valley as one can get. After all, the basic concept underlying radar was proven in 1886, when a German physicist named Heinrich Hertz showed that radio waves could be reflected from solid objects. And the... Read More

    March 28, 2024
    by Dan McCue
    Vice President Harris Rolls Out First Government-Wide Policy to Mitigate AI Risks

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the... Read More

    WASHINGTON — Vice President Kamala Harris on Wednesday rolled out the Biden administration’s first government-wide policy intended to mitigate the risks associated with artificial intelligence while still enabling its use to advance the public interest. The new policy, which is being issued through the White House... Read More

    March 21, 2024
    by Tom Ramstack
    Lawmakers Say US Semiconductors Sometimes Used by Foreign Adversaries

    WASHINGTON — A congressional panel juggled competing interests Thursday of trying to lead the world in industrial development without having... Read More

    WASHINGTON — A congressional panel juggled competing interests Thursday of trying to lead the world in industrial development without having the new technologies fall into the hands of foreign militaries that might want to harm the United States. More than anything, lawmakers want more and better... Read More

    March 21, 2024
    by Dan McCue
    DOJ, 16 States Sue Apple Over Alleged Smartphone Monopoly

    WASHINGTON — The Justice Department and 16 state attorneys general sued Apple on Thursday accusing the Cupertino, California-based tech giant... Read More

    WASHINGTON — The Justice Department and 16 state attorneys general sued Apple on Thursday accusing the Cupertino, California-based tech giant of operating an illegal monopoly in the smartphone market. According to the lawsuit, which was filed in federal court in New Jersey, Apple has used the... Read More

    House Passes Bill That Would Lead to TikTok Ban if Chinese Owner Doesn't Sell. Senate Path Unclear

    WASHINGTON (AP) — The House on Wednesday passed a bill that would lead to a nationwide ban of the popular video app... Read More

    WASHINGTON (AP) — The House on Wednesday passed a bill that would lead to a nationwide ban of the popular video app TikTok if its China-based owner doesn't sell, as lawmakers acted on concerns that the company's current ownership structure is a national security threat. The bill, passed by... Read More

    In New York City, Heat Pumps That Fit in Apartment Windows Promise Big Emissions Cuts

    NEW YORK (AP) — For 27 years, the heat in Regina Fred’s Queens apartment building came from a noisy steam... Read More

    NEW YORK (AP) — For 27 years, the heat in Regina Fred’s Queens apartment building came from a noisy steam radiator that she couldn't control and sometimes didn't come on at all, leaving her shivering. Sometimes, the radiators ran so hot that residents had to keep... Read More

    News From The Well
    scroll top