Tuesday , 3 August 2021
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U.S. lawmakers unveil bid to boost domestic chipmaking industry

U.S. lawmakers unveil bid to boost domestic chipmaking industry

The measure, backed by top Senate Democrat Chuck Schumer and key Republican Tom Cotton, would offer $15 billion in federal grants to states to build, expand or modernize domestic semiconductor manufacturing and R&D facilities.

It would also authorize $5 billion in federal dollars towards public-private projects to build or modernize fabs that produce “measurably secure and specialized microelectronics” for use by the federal government as well as for critical infrastructure.

An additional $5 billion would be allocated as grants to federal agencies to foment research and development in the sector.

The measure was offered as an amendment to the National Defense Authorization Act, which authorizes U.S. military spending but is used as a vehicle for a broad range of policy matters as it has passed annually for more than 50 years.

However, the bill will be introduced as a standalone on Monday as well to bolster its chances, a Senate aide said.

While approval is far from guaranteed in politically gridlocked Washington, the amendment is part of a growing bipartisan campaign to fuel growth of U.S. chip foundries, as the industry’s center of gravity has shifted to Asia.