July 20, 2022
U.S. Inches Closer to Increased Chip Production
U.S. semicondutor production has decreased from 37% in 1990 to 12% today
On Tuesday, the U.S. Senate voted 64 to 34 in a procedural measure that sets the stage for potential votes to pass the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS) in the Senate and House of Representatives by the end of next week.
CHIPS is a U.S. bill designed to decrease the United States' dependency on Asian semiconductor production while increasing domestic semiconductor manufacturing and research. The bill proposes approximately $52 billion in subsidies for U.S. semiconductor companies and offers 25% tax credits to encourage companies to build plants in the United States. The Semiconductor Industry Association estimates that the share of modern semiconductor manufacturing capacity located in the U.S. has decreased from 37% in 1990 to 12% today.
The Semiconductor Industry Association issued the following statement in support of the recent Senate vote:
“We applaud the bipartisan group of leaders in Congress who have worked tirelessly to advance the CHIPS Act. We look forward to working with them toward final Senate passage and then swift approval in the House. This is America’s window of opportunity to re-invigorate chip manufacturing, design, and research on U.S. shores, and Congress should seize it before the window slams shut.”
In the Yahoo Finance interview above Brian Gardner, Stifel Chief Washington Policy Strategist, shares some of CHIPS' pros and cons that are being debated among government and industry stakeholders.
