The US to Stop the Chip Funding Deadlock

US House of Representatives will vote on the legislation which will provide billions in subsidies and tax credits to the semiconductor industry. The speaker of the House of Representatives Nancy Pelosi told politicians to prepare for a vote next week.

Pelosi stated that the CHIPS Act for America would boost the US economy, reducing domestic prices while improving the nation’s global competitiveness. The US Senate approved a procedural measure that could result in a vote on the Act being held this week. This would leave the path clear for the House of Representatives to vote and for President Joe Biden to sign the Act into law, all of which could apparently happen next week.

In 2021, the Senate approved a $250 billion bill to fund US chipmaking to compete with China, but the House of Representatives never voted on it. The measure passed by the Senate this week was a slender version of the original legislation. The reworked plan involves subsidies of around $54 billion and a tax credit scheme covering the construction of domestic factories.

The delay in passing the bill had already affected the chipmaker’s plans. Intel reportedly halted work on one new factory in the US, while Taiwan Semiconductor Manufacturing Co warned of delays to a site it hoped to bring online in 2024.