• Mon. Feb 26th, 2024

US CHIPS Bill Gathers Momentum, Senate Votes 64-34

ByAnusuya Lahiri

Jul 20, 2022
US CHIPS Bill Gathers Momentum, Senate Votes 64-34

  • A bipartisan bill subsidizing domestic semiconductor production garnered 64-34 votes as lawmakers worked out the details of the legislation, the Wall Street Journal reports.
  • It won enough votes to comfortably overcome a Senate filibuster and advance and move forward with adding the science funding.
  • The legislation would provide $52 billion in subsidies to encourage chip production in the U.S., reducing its dependence on foreign tech. 
  • Also Read:  Why The CHIPS Act Is Good News For Intel, Bad News For Nvidia, Advanced Micro Devices
  • Lawmakers worked until late July 19 to negotiate other elements in the competitiveness package, dubbed USICA.
  • The vote paves the way for a larger package that would include additional funding for scientific research subject to sufficient Republican support.
  • It would back early-stage research using technology in water systems, behavioral health, and precision agriculture and bolster technology education.
  • US’s dillydallying over the bill sent shockwaves among Intel Corp INTC and Taiwan Semiconductor Manufacturing Company Ltd TSM amid colossal investment in building plants in the U.S., spurred partly by the promise of government incentives worth $52 billion.
  • The pandemic played a significant role in vandalizing the semiconductor supply chain. 
  • The crisis got further aggravated as chipmakers focused on smartphones, PCs, and laptops as the world moved online during the pandemic for work, study, and recreation at the cost of the carmakers who had to opt for production cuts. The Russia-Ukraine crisis added the last nail to the coffin.
  • The semiconductor crisis and inflation have already forced the chipmakers to hike prices.
  • Price Action: TSM shares traded lower by 0.87% at $85.40 in the premarket on the last check Wednesday.
  • Photo via Wikimedia Commons

Image and article originally from www.benzinga.com. Read the original article here.