This website uses cookies to store information on your computer. Some of these cookies are used for visitor analysis, others are essential to making our site function properly and improve the user experience. By using this site, you consent to the placement of these cookies. Click Accept to consent and dismiss this message or Deny to leave this website. Read our Privacy Statement for more.
On July 28, 2022, the House of Representatives passed the legislation known as “CHIPS Plus” to strengthen the domestic chip manufacturing industry and finance scientific research to shore up competitiveness with China. The Senate approved the bill on July 27 in a bipartisan vote.The bill’s passage through both chambers marks a significant legislative achievement after more than a year of negotiation.
Some highlights of the measure include:
Allocates $54 billion for chips and public wireless supply chain innovation ($39 billion of this goes towards financial assistance to build and modernize semiconductor facilities in the US)
$80 billion to the National Science Foundation authorized over five years to support research and innovation
Establishes a 25% tax credit for investment in semiconductor manufacturing
$1 billion pilot program for the Commerce Department to provide grants to assist distressed communities to fund economic development activities
The legislation now heads to President Biden who is expected to sign it in the coming weeks.White House officials are hoping the legislation spurs the construction of new chip plants in the U.S. soon.That would create construction jobs and the new facilities would eventually boost the availability of manufacturing jobs. For questions on the CHIPS Plus legislation, or any VMA government affairs issue, contact Marc Pasternak at mpasternak@vma.org.