U.S. Senate votes to advance CHIPS Act
The U.S. Senate yesterday voted to advance the CHIPS Act, a legislation that would supercharge the U.S. chip industry by providing USD 52 billion for domestic semiconductor R&D and manufacturing.
”The Senate backed by 64 to 34 a procedural measure setting the stage for potential votes to pass the legislation in the Senate and House of Representatives by the end of next week,” a Reuters report reads.
The Semiconductor Industry Association (SIA) released a statement from President and CEO John Neuffer ”applauding Senate action to advance the CHIPS Act”.
The Senate CHIPS Act would greatly strengthen America’s economy, national security, and leadership in the technologies that will determine our future. The bill would spur hundreds of billions of dollars in private semiconductor investments in America, create hundreds of thousands of U.S. jobs, and help ensure our country has the chips it needs for critical defense applications and sectors of the economy, Neuffer states in a press release.
We applaud the bipartisan group of leaders in Congress who have worked tirelessly to advance the CHIPS Act. We look forward to working with them toward final Senate passage and then swift approval in the House. This is America’s window of opportunity to re-invigorate chip manufacturing, design, and research on U.S. shores, and Congress should seize it before the window slams shut, Neuffer continues.
The share of modern semiconductor manufacturing capacity located in the U.S. has, according to SIA, decreased from 37% in 1990 to 12% today. This decline, SIA continues, is largely due to substantial manufacturing incentives offered by the governments of our global competitors, placing the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities.
The legislation also includes an investment tax credit for semiconductor manufacturing. SIA states that an investment tax credit for semiconductor manufacturing and design, as called for by the FABS Act introduced in the House, is an important complement to other manufacturing incentives and research investments. A combination of grants, tax credits, and research investments is needed to turbocharge U.S. semiconductor production and innovation.
Dr. Thomas Caulfield, president and CEO of GlobalFoundries also released a statement following the Senate action to move ahead with the CHIPS Act.
Today’s vote is an important, necessary and welcome milestone in an effort to develop and enact policies that strengthen U.S. high-tech manufacturing competitiveness, economic and national security, and create high-paying semiconductor manufacturing jobs in America. The past two years have clearly shown how vitally important chips are to American consumers, businesses and the economic health of our nation, both today and in the future.”
Now our country needs the Senate, House of Representatives and White House to make a final push so that we can grow chip manufacturing in the U.S, Caulfield added.