Senate Approves CHIPS & Science Act With $52B in Domestic Semiconductor Industry Incentives

U.S. senators voted 64-33 Wednesday to approve a $280 billion funding bill that would give more than $52 billion to domestic semiconductor production, manufacturing research, workforce training and laboratory-to-fabrication transition programs.

The CHIPS and Science Act of 2022, which is now headed to the House of Representatives for approval, also offers an estimated $24 billion tax credit to chip factories.

Congress aims to send the bipartisan legislation to President Joe Biden’s desk before lawmakers depart for their annual August break.

President Biden said that implementation of the bill is one way to reduce U.S.’ reliance on foreign countries for a critical technology that consumers and national security missions need.

Meanwhile, business organizations and industry leaders called for the final passage of the bill to address a chip shortage that affects not only the technology sector, but also the defense and aerospace industries.

“An exercise in pure cost management without regard to supply chain implications and sovereignty has created high-tech vulnerability and low-tech supply chain attack vectors not just in the United States but around the globe,” said Executive Mosaic CEO Jim Garrettson.

Executive Mosaic is a leading provider of an exclusive forum and cross-media platform for government contracting executives of consequence.

“The United States, in tandem with the CHIPS Act, must also subsidize research and development that the GovCon industry is presently shouldering. Breakthrough national security and defense solutions will come from a more balanced government/GovCon model of expense sharing and perhaps a more intentional disaggregation of research solutions,” Garrettson added.

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