Congress Passes CHIPS Act to Compete with China by Investing in Cutting-Edge Technologies
The Senate on Wednesday passed an expansive $280 billion bill aimed at building up America’s manufacturing and technological edge to counter China, embracing in an overwhelming bipartisan vote the most significant government intervention in industrial policy in decades, writes The New York Times.
"No country’s government — even a strong country like ours — can afford to sit on the sidelines," Senator Chuck Schumer, Democrat of New York and the majority leader who helped to spearhead the measure, said in an interview. "I think it’s a sea change that will stay."
Senate Passes $280 Billion Industrial Policy Bill to Counter China (The New York Times)
According to TechCrunch, the bill is a reaction to the on-going global chip shortage, itself a result of a confluence of international crises, including the pandemic, tense U.S.-China relations, extreme weather phenomena and the on-going Russia-Ukraine War. Those factors, combined with the manufacturing’s concentration in Asia (specifically Taiwan), have led to shortages in the chips that power everything from phones to cars.
"We are moving forward on the Senate CHIPS bill," Senate Majority Leader Chuck Schumer said in a statement tied to the vote. "It’s going to take aim at the national semiconductor chip shortage, lower costs for American consumers, and boost scientific innovation and jobs."
Senate passes CHIPS Act to subsidize domestic semiconductor production (TechCrunch)
The House is likely to approve the funding by the end of the week, and President Joe Biden is expected to sign the legislation soon afterward. But while its biggest champions have connected the CHIPS Act to the ongoing chip shortage, the legislation won’t really help, at least in the short term, reports Vox.
The CHIPS Act won’t solve the chip shortage (Vox)
UPDATE: On Thursday, the House passed the CHIPS legislation on a 243-187 vote, with strong bipartisan support — despite a last-minute push by House GOP leaders to whip against the bill. Twenty-four Republicans defied the leadership and joined Democrats in backing the measure, according to The Washington Post.
Jump to this week's edition of:
World News (Part 1)
World News (Part 2)