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| Photo Credit: VOA. |
U.S. House Thursday voted to pass a $280 billion semiconductor bill following the passage of a similar measure by the U.S. Senate on Wednesday.
The bill provides funding for companies to compete with China in innovation, including $52 billion to fund semiconductor factories in the United States, according to Washington Examiner.
The measure
passed by 243 to 187 in favor of the legislation with two dozen Republicans
voting in favor of the bill that will help American firms better compete with
China.
Biden says semiconductor bill is needed to grow U.S. economy
"The
CHIPS and Science Act is exactly what we need to be doing to grow our economy
right now," said President Joe Biden in a statement, Washington Examiner
reported. "By making more semiconductors in the United States, this bill
will increase domestic manufacturing and lower costs for families. And, it will
strengthen our national security by making us less dependent on foreign sources
of semiconductors. This bill includes important guardrails to ensure that
companies receiving tax payer dollars invest in America and that union workers
are building new manufacturing plants across the country."
Semiconductor industry praised the bill
The bill was
praised by the semiconductor industry, according to Washington Examiner.
“By passing the CHIPS Act, Congress has risen
to a defining challenge of our time, seized an historic opportunity to fortify
American semiconductor manufacturing, design, and research, and delivered a big
win for our country," said Semiconductor Industry Association CEO John
Neuffer in a press statement. "The bill’s investments in chip production
and innovation will strengthen America’s economy and national security — both
of which rely heavily on chips — and reinforce our country’s semiconductor
supply chains."
"This
legislation comes to the House precisely as Senate Democrats have allegedly
struck a deal on their partisan reconciliation bill, pairing up a tone-deaf
agenda that, on one hand, gives billions away in corporate handouts, and on the
other hand undoes historic tax cuts implemented by Republicans," Rep.
Steve Scalise's (R-LA) office wrote in a memo, according to Washington Examiner.
The U.S. has
struggled to keep up with demands for semiconductors needed to produce badly
needed electronics, computer and automobile. Toyota reportedly cut car
production quota by 50,000 in July 2022 due to a lack of semiconductors, according
to Washington Examiner.
U.S. Senate passed semiconductor bill on 64-33
Earlier the
U.S. Senate passed a semi-conductor bill to boast chip production and offer
American companies leverage to better compete with China.
The bill
will encourage semiconductor companies to build chip plants in the United
States by providing $280 billion in funding which includes federal grants and
tax breaks for companies that construct their chip facilities in the U.S., The
Associated Press reported.
Semiconductors
power automobiles, computers, appliances and the nation’s most advanced
military weapons systems.
While
proponents of the bill argue the bill would lure high tech companies to the
United States and provide badly needed chips for the nation’s advancement,
opponents say it will increase federal deficits by about $79 billion over a 10
year period.