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Senate passes CHIPS Act to incentivize more companies to set up plants in U.S.

  • / Updated:
  • Hayley Jones 

The federal CHIPS Act is awaiting a House vote after passing the Senate on Wednesday.

The bill encourages more semiconductor companies to build plants in the United States through a number of financial incentives.

$280 billion legislation encourages more tech companies to set up chip manufacturing plants in U.S.

Federal grants and tax breaks would be available to companies that build their chip plants in the U.S. through the $280 billion measure, according to Albany Times-Union.

The CHIPS and Science Act of 2022, also called CHIPS+, enables Congress to increase spending on technology research programs in an effort to keep the U.S. competitive in an increasingly globalized world.

Senator Majority Leader Chuck Schumer (D-NY) said the legislation marks the nation’s largest investment in science and manufacturing in decades.

“I told our caucus yesterday that our grandchildren will hold good-paying jobs in industries we can’t even imagine because of what we are doing now,” offered Schumer. “This is going to go down as one of the major bipartisan achievements of this Congress.”

House Speaker Nancy Pelosi said she’s confident the bill has enough support to pass the House before the legislative recess.

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House vote on CHIPS Act expected this week

Semiconductors power vital technology like automobiles, computers, appliances and some advanced military weapons.

President Joe Biden encouraged Congress to move fast on the bill. He said a shortage of semiconductors was the primary driving force behind rising automobile costs during a virtual roundtable with industry leaders on Monday, July 25.

The bill passed the Senate by a 64-33 vote. The House vote is expected to happen this week.

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