Electronics

After two years on hold, the U.S. Senate agreed to move forward with a stripped-down semiconductor subsidy bill.

On July 19, the Senate agreed to advance the CHIPS plus bill with 64 votes in favor and 34 against. The bill includes about $52 billion in subsidies to U.S. semiconductor companies and a new, four-year 25 percent tax credit to encourage companies to build factories in the United States. The tax credit is estimated to be worth about $24 billion.

Next, the Senate will hold a final vote on CHIPS plus, which will then go to the House of Representatives. Some officials have urged passage as soon as possible before Congress adjourns in August. Chip companies have stepped up their lobbying efforts over the past few weeks.

Reva Goujon, a senior manager at Rhodium Group, a research consultancy in the United States, said the procedural vote is to measure whether the Senate can have at least 60 votes in support. Achieving this standard can pass the Senate vote.

In response to chip shortages, the U.S. introduced the Create Beneficial Semiconductor Production for America Act (CHIPS) two years ago, calling for improvements in U.S. semiconductor manufacturing and R&D. CHIPS plus is its stripped-down version. The final text of the edition was not made public before the vote on the 19th. Still, the $52 billion in subsidies and $24 billion in tax credits were largely agreed. The industry's focus is on what the so-called "plus" specifically adds.

According to the content circulated earlier, it may include a ban on companies that take US subsidies to invest in mainland China or expand the production of fabs below 28 nanometers. Reva Goujon, the aforementioned Rhodium Group manager, said it was important to see if the final text involved funding for fabless chip design companies, and what specific conditions were attached to the funding.