Senate Passes CHIPS Bill by 64-33 Vote – Dealer Operations

creative commons

The U.S. Senate has passed a bipartisan bill providing billions of dollars to boost domestic semiconductor production to weather the global shortage of microchips.

CHIPS and Science Act or “CHIPS-plus” Allocates $52 Billion in Government Subsidies to U.S. Semiconductor Research, Design and Production, Including $2 Billion for “Legacy Chips” Used by Automakers and Component Suppliers I’m here.

The bill also includes a 25% tax credit on investments in semiconductor manufacturing through 2026, spending billions of dollars on science and technology innovation to boost economic growth, job creation, and national security. Investing.

The Senate passed the bill by a vote of 64 to 33. Now it’s headed to the U.S. House of Representatives and is expected to pass as early as this week.

The bill represents a scaled-down version of previous legislation to address global semiconductor shortages and other supply chain disruptions. Previous legislation was also intended to improve US competitiveness with countries such as China, Taiwan, South Korea, and the European Union.

Funding for the CHIPS (Creating Helpful Incentives to Produce Semiconductors for America) Act was part of the US Innovation and Competition Act passed in 2021.

The bill has been criticized by some critics, including Sen. Bernie Sanders, who has called it a “blank check for the microchip industry.”

Republican Senator Pat Toomey of Pennsylvania called the bill a “corporate benefit” to “the semiconductor manufacturing industry, a very sophisticated and profitable industry in America.”

However, the Alliance for Automotive Innovation applauded the passage of the bill in the Senate and urged the House to pass it as well.

“Other countries are taking aggressive steps to stay ahead of the United States in semiconductor production. Investing in American-made chips today will give us more control over our destiny tomorrow. Of course, we will be less dependent on foreign suppliers and governments,” Alliance CEO John Bozera told Automotive News.

In June, major automakers and industry suppliers called on Congress to swiftly pass bipartisan competitiveness legislation, including the CHIPS Act.

“No supply chain shortage has a greater impact on the U.S. economy than the shortage of automotive-grade semiconductors,” the U.S. Automotive Policy Council said in a statement Monday.

A critical chip shortage has caused U.S. automakers to cut production of 1.5 million vehicles, leading to a critical shortage of new car inventories.

https://ift.tt/yMDYPvd Senate Passes CHIPS Bill by 64-33 Vote – Dealer Operations

The post Senate Passes CHIPS Bill by 64-33 Vote – Dealer Operations appeared first on Autobala.

Auto Updates