Congress has been working to pass a $52 billion dollar semiconductor manufacturing subsidy bill called the CHIPS Act, and not everyone supports it.
Despite this, it was passed by the Senate and will make its way to the House for a vote.
According to the Times Union, Senator Bernie Sanders of Vermont did not support the bill.
Vermont would benefit from the chip industry.
Not only does Sanders oppose the bill, but so do conservative Republicans over the cost.
What is the CHIPS Act?
The CHIPS Act is a way for the government in the U.S. to cash in on the global chip manufacturing industry.
Right now the majority of the market share goes to Asia, with China getting the most.
$39 billion dollars in subsidies would go to chip manufacturers to build new factories in the U.S.
These factories would focus on researching and labs surrounding advanced chip manufacturing approaches.
The Senate passed the bill is a procedural vote last week and the House needs to pass it as well for it to go into effect.
By passing the CHIPS Act, the U.S. will always have a chip supply for the military and have a chance at getting a piece of the domestic chip supply chain.
Right now it’s controlled by China and creates issues with auto production in the United States.
Lawmakers in opposition to the CHIPS Act
Previously mentioned was Senator Bernie Sanders opposition to the Act.
He doesn’t argue that there isn’t a need for the chip industry to be fixed in the U.S.
What his issue is with is with the funding that he calls a bribe to keep the five main global chipmakers.
Most of these are under foreign ownership.
He added that any company accepting subsidies should have to give the government stock or equity in exchange.
A $70 billion dollar profit was made last year among the five biggest chipmakers which include GlobalFoundries, Intel, Samsung, Micron and Texas Instruments.
According to the Milwaukee Journal Sentinel, Senator Ron Johnson voted against the CHIPS Act as well.
33 senators in all voted against the act and described it as corporate welfare.
The CHIPS Act supporting semiconductor manufacturing passed the Senate on Wednesday, with a vote of 64-33.
Johnson doubled down on calling the bill corporate welfare and stated it would only fuel the flames of inflation.
In an interview with Fox, he stated that the bill made no sense and that there was more than enough money available in the economy to invest with.
Why are some members of congress in favor of the CHIPS Act?
Many who favor the bill passed it because they like the idea of job growth and reduction of national security risks.
If the U.S. did not have access to semiconductor chips, there could be major issues.
In the state of Wisconsin, the bill will help that manufacturing industry.
Lawmakers are hopeful that once the bill makes its way to the House, it has support.
After that, it will need to go to the White House for President Joe Biden’s signature.
According to CNBC, the bill is also known as the Chips and Science Act.
Related: Senate passes CHIPS Act to incentivize more companies to set up plants in U.S.
Samantha edits our personal finance and consumer news section. Have a question or lead? Send it to [email protected].