US Senate clears bill that promotes semiconductor production

The US Senate voted on Tuesday to advance the legislation that would provide subsidies for the production of semiconductor chips. The vote to proceed with the bill was 64-32.

The CHIPS for America Act, short for the Creating Helpful Incentives to Produce Semiconductors for America Act, would designate $52 billion in subsidies and offer an investment tax credit to encourage semiconductor companies to boost manufacturing in the US.

“America invented the semiconductor. It’s time to bring it home,” Biden said during a meeting at the White House on Monday afternoon.

The bill still would need to pass the House before it could go to the president for his signature. Democrats hope to pass the legislation before August recess. The House passed a similar bill to support semiconductor chip production earlier this year, but Democrats have since negotiated further to reach an agreement that could pass both chambers.