The United States Senate passed a bipartisan bill on July 27 to boost domestic production of computer chips and help the country compete with China.
In a 64-33 vote, the Senate approved the bill known as CHIPS-plus or Chips and Science Act, to support the manufacturing of semiconductor chips in the U.S.
The legislation would provide $54.2 billion to support the industry, including $39 billion in financial assistance to modernize facilities and $11 billion for research and development through the Department of Commerce.
In addition to being vital for the economy, advocates said that the bill was also critical for national security, especially when it comes to chips used for military equipment.
According to the Congressional Budget Office, the legislation would cost nearly $80 billion over the next decade.
The bill now heads to the House for approval before heading to President Joe Biden to be signed into law.
House Speaker Nancy Pelosi called the legislation “a major victory for American families and the American economy” and added that the House “will proudly pass this essential legislation.”
In a statement, Biden described the legislation as “a historic bill that will lower costs and create jobs.”
“It will mean more resilient American supply chains, so we are never so reliant on foreign countries for the critical technologies that we need for American consumers and national security,” Biden said.
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