US House of Reps passes CHIPS and Science Act of 2022
Last week saw the US House of Representatives pass the CHIPS and Science Act of 2022, aimed at increasing American semiconductor manufacturing. The Bill includes provisions that make historic investments to surge production of US-made semiconductors, tackle supply chain vulnerabilities to make more goods in the US, bolster US scientific research and technological leadership, and strengthen economic and national security at home and abroad.
First passing the Senate with a vote of 64–33, and then the House of Reps by 243–187, the bipartisan Bill provides a 25% tax credit for US facilities that produce semiconductors or chip-making equipment and US$52 billion in funding for new semiconductor programs. The funding includes US$39 billion for grants available to semiconductor manufacturers as well as equipment and materials suppliers and US$11 billion for federal semiconductor research programs.
US President Joe Biden said the Bill was set to lower the cost of goods including cars, appliances and computers, while also creating high-paying manufacturing jobs across the country and strengthening US leadership in the industries of the future.
“The CHIPS and Science Act is exactly what we need to be doing to grow our economy right now,” Biden said. “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.
“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.
“I look forward to signing this Bill into law.”
SEMI, the industry association serving the global electronics design and manufacturing supply chain, has applauded the passage of the Bill. The association’s President and CEO, Ajit Manocha, said, “The investment tax credit and funding for CHIPS Act programs will be instrumental in bolstering semiconductor manufacturing and R&D along with a wide range of technology-reliant US supply chains, create thousands of high-skill jobs and keep pace with incentive programs around the world.
“With semiconductor manufacturing fabs heavily reliant on a complex mix of equipment and materials providers, the inclusion of these critical contributors in the incentives will help to ensure the competitiveness and resiliency of the US semiconductor ecosystem,” Manocha added.
Electronex returned to Melbourne in 2023, bringing in record numbers of attendees who welcomed...
PCIM Asia is set to make its return from 29–31 August 2023, providing insights on the...
Global distributor DigiKey has refreshed its look to mark its 50th anniversary, with a new logo,...