The US legislature has passed the CHIPS and Science Act, providing $52 billion in subsidies for US semiconductor manufacturers. President Biden has committed to signing it into law. The bill authorizes $240,000,000,000 (240 billion) over several years for R&D and development. Republicans in the house initially resisted passage over technology funding, and progressive Democrats pushed back over subsidies to wealthy chip companies. After passage in the Senate, the House ultimately voted 243-187 in favor of the bill.
“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,” says Joe Biden, President of the United States. “This bill includes important guardrails to ensure that companies receiving taxpayer dollars invest in America and that union workers are building new manufacturing plants across the country.”
CHIPS and Science Act Highlights
- $52.7 billion in emergency supplemental appropriations for semiconductor companies
- $50 billion will be allocated over five years for a ‘CHIPS for America Fund,’ where funding must be used to implement the Commerce Department semiconductor incentive
- Within that $50 billion, $2 billion will go to older legacy chips that are crucial for the automotive industry and military
- Up to $6 billion will be in the form of loans or loan guarantees
- $11 billion will go to R&D
- $2 billion will go to a ‘CHIPS for America Defense Fund’
- $500 million will go to working with foreign countries to shore up supply chains
- $200 million for growing a skilled workforce
- $1.5 billion will go to support the Public Wireless Supply Chain Innovation Fund
- 25% investment tax credit for investments in semiconductor manufacturing
- Advanced Scientific Computing Research Program, which includes a $100m per year until 2027 for a quantum network infrastructure research program.
- $9.68 billion for the National Institute of Standards and Technology (NIST) over five years
- $81 billion is authorized for the National Science Foundation (NSF) over five years, with a lot going to STEM education, as well as cybersecurity workforce development.