Senate passes chips and science bill aimed at better competing with China
by Alexander Bolton - 07/27/22 1:16 PM ET
The Senate voted with a large bipartisan majority Wednesday to pass a $280 billion bill to subsidize the domestic chip manufacturing industry and provide tens of billions of dollars for scientific research to keep the United States’ technological edge in the global economy.
The 64-33 vote caps more than a year of negotiations over the bill, which stalled for months in the House because of progressive Democrats’ objections to trade-related and other provisions in the bill, such as language to provide security safeguards for technological research.
The bill, which is expected to have enough votes to pass the House, would be one of the biggest legislative accomplishments of the Congress and would be a boon to the nation’s high-tech manufacturing industry.
It is designed to reduce U.S. reliance on Chinese- and foreign-manufactured chips in military hardware and other products. The revelation that the Pentagon waived restrictions on Chinese-manufactured components in weapons such as the F-35 fighter caused controversy several years ago.
It will provide $54 billion in total appropriations for chips and public wireless supply chain innovation, including $39 billion in financial assistance to build, expand and modernize domestic semiconductor facilities and $11 billion for Department of Commerce research and development.
It would also provide $81 billion to the National Science Foundation (NSF), including $20 billion for an NSF tech directorate, and create a 25 percent tax credit for investments in semiconductor manufacturing.
Senate Majority Leader Charles Schumer (D-N.Y.), who led the negotiations on the bill, hailed it as an “historic and momentous” achievement.
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https://thehill.com/homenews/senate/3576405-senate-passes-chips-and-science-bill-aimed-at-better-competing-with-china/