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.<\/p>\n
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.<\/p>\n
The passage means the bill is now awaiting signature by U.S. President Joe Biden, a move expected next week.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n