The U.S. House of Representatives on July 28 passed sweeping legislation to spur domestic production of semiconductor chips and boost scientific research.
The House voted 243-187 to advance the $280 billion voted yesterday, one day after the Senate approved the bill in a 64-33 vote. The legislation now goes to President Joe Biden, who is expected to sign it into law by next week.
The CHIPS bill includes more than $52 billion in total appropriations for boosting domestic chip production and research. Of that total, $39 billion is specifically earmarked to assist entities in building, expanding or modernizing domestic facilities and equipment for semiconductor fabrication, assembly, testing, advanced packaging or research and development.
Only 12% of chips — which are used in computers, automobiles and many other products — are currently manufactured domestically, compared to 37% in the 1990s.
The pandemic exacerbated chip supply shortages as demand for consumer electronics skyrocketed, resulting in price hikes for products ranging from phones and laptops to cars and industrial equipment.
TechNet, an organization made up of technology CEOs and senior executives, applauded the CHIPS bill's passage. "Congress has now taken the bold action needed to accelerate a new era of innovation in this country that will power our economy forward in the years ahead and counter investments being made by our foreign rivals, including China," TechNet CEO Linda Moore said in a statement.
"Our company along with many others is ready to get to work to make sure this investment accelerates U.S. leadership in semiconductor innovation and manufacturing and benefits as many Americans as possible, as soon as possible," said International Business Machines Corp. CEO Arvind Krishna in prepared remarks.
Defense leaders say the chips funding is vital for the development of warfare systems, missiles and military airplanes.
Outside of semiconductors, the bill proposes a range of U.S. Energy Department science reforms, among other items.
The legislation authorizes $50 million per year across fiscal years 2023-2027 to support basic research in multivalent ion materials in electric energy storage systems. The bill also establishes a "carbon materials research initiative" to expand fundamental knowledge of coal, coal-wastes and carbon ore chemistry as well as a "carbon sequestration research and geologic computational science initiative" to improve understanding of carbon sequestration in geologic formations.
The proposal authorizes DOE programs to form regional clean energy innovation partnerships, create a national clean energy incubator to accelerate the commercial application of related technologies and coordinate clean energy technology transfers.