July 29, 2022
The United States House of Representatives on Thursday passed legislation that will allow the country to invest heavily in local semiconductor production and scientific research.
The final vote was 243-187, with 24 Republicans and 218 Democrats supporting the bill, which will help make the U.S. more competitive with China.
The passage means the bill is now awaiting signature by U.S. President Joe Biden, a move expected next week.
The bill provides for about US$52 billion in government subsidies for semiconductor production in the U.S., including a tax credit for chip plants estimated to be worth US$24 billion.
The bill will also authorize US$200 billion over 10 years to boost scientific research in the U.S. to better compete with China, but this is still a work in progress, as Congress has yet to pass its own bill to fund these investments.
China had vigorously opposed and lobbied against the semiconductor law, with the Chinese Embassy in Washington claiming that China had “firmly opposed” the bill calling it reminiscent of a “Cold War mentality” and “counter to the common aspiration of people” in both countries.
The sources for this piece include an article in Reuters.
