The US Senate passed legislation on Wednesday to boost domestic production of semiconductors amid a shortage of the microchips that power everything from smartphones to cars to guns.
The bill, which now returns to the House of Representatives for final passage, provides $52 billion to increase domestic semiconductor production and more than $100 billion over five years for research and development.
The CHIPS bill passed the Senate in a rare bipartisan vote of 64-33, with 17 Republicans and Democrats shaking hands.
President Joe Biden welcomed the Senate passage of the bill, which he said will “speed up semiconductor manufacturing in America and bring down prices on everything from cars to dishwashers.”
“It will also create jobs — good-paying jobs right here in the United States,” Biden said in a statement.
“This will mean more resilient American supply chains, so we’ll never be as reliant on foreign countries for critical technologies we need for American consumers and national security,” he said.
Global semiconductor supplies have been severely disrupted by the impact of the Covid-19 pandemic shutdowns, leading to shortages of chips – many of which are made in Asia.
The shortage has significantly slowed production of new automobiles over the past year, causing prices to rise.
The CHIPS Act, passed on Wednesday, provides $39 billion to fund semiconductor fabs in the United States and another $13 billion for research.
The Senate passage of the bill came a day after South Korean group SK announced a huge investment in the US semiconductor and other high-tech industries.
The conglomerate said in a statement it plans to “increase its new investments in the United States by $22 billion in areas like semiconductors, green energy and life sciences, creating tens of thousands of new high-tech, high-paying American jobs.”
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