Senate Passes $280 Billion Industrial Policy Bill Meant to Counter China

 

The legislation includes about $52 billion to subsidize domestic semiconductor manufacturing

by Dave DeCamp 

Posted onJuly 27, 2022CategoriesNewsTagsChina

The Senate on Wednesday voted to pass a massive $280 billion spending bill meant to help the US out-compete China, which includes about $52 billion to subsidize the domestic production of semiconductor microchips.

The CHIPS and Science Act of 2022 passed in a vote of 63-33, with 17 Republicans voting in favor. The over 1,000-page legislation includes $52.7 billion for direct funding for the construction and expansion of semiconductor manufacturing and $24 billion for tax incentives and other purposes.

The bill will authorize roughly $200 billion in science and technology research funding that will be spread across several government agencies over the next five years. The largest recipient of the research funds will be the National Science Foundation, which will receive $81 billion.

Sen. Chuck Schumer (D-NY) led the effort to pass the bill in the Senate and convinced enough Republicans to get on board by arguing it was necessary to beat China. “If we didn’t get there first, our rivals, chief among them the Chinese Communist Party, would likely beat us to the punch and reshape the world in their authoritarian image,” Schumer said before the vote.

Republican opponents of the bill said the semiconductor funds are akin to corporate welfare. Earlier this week, President Biden and Deputy Defense Secretary Kathleen Hicks discussed the legislation with the CEO of Lockheed Martin, who says more semiconductors are needed to build advanced weapons.

The bill is expected to be voted through the House in the coming days and could be signed into law by President Biden before the end of the week. An earlier version of the legislation passed the House back in February, but it was stalled in the Senate until it was stripped down to the CHIPS and Science Act, although the final legislation added $30 billion.

https://news.antiwar.com/2022/07/27/senate-passes-280-billion-industrial-policy-bill-meant-to-counter-china/