On Wednesday, July 27, the Senate passed a bill that provides $52 billion to restore semiconductor manufacturing in the United States, a text that still needs to be ratified by the House of Representatives.
The money is included in a larger law that also provides more than $100 billion over five years for research and development. 64 out of 100 senators, Democrats and Republicans, voted in favor.Action and science chips“. “The Senate passed historic legislation that will cut costs and create jobs“President Joe Biden immediately commented, urging elected members of the House of Representatives to pass the law.”quickly“.
Demand for semiconductors, which underpin all modern electronics, has exploded during the pandemic, causing a deepening global shortage amid Chinese factory shutdowns amid a resurgence of Covid. Supply problems for these chips, found in both smartphones and helicopters, have fueled rising inflation in the country, according to Joe Biden’s administration. In particular, they slowed down the production of new cars last year, as a result of which prices in the automotive industry increased.
A threat to national security
The government says the United States’ reliance on factories located primarily in Asia poses a national security risk because so much military equipment is powered by those chips. Despite a shared view by Democrats and Republicans of the imperative to revive national manufacturing, elected representatives in Congress have been unable to agree on a final text for months. As for microprocessors, the bill finally provides $39 billion in aid to encourage companies to manufacture locally, and $13 billion to research labs. Several manufacturers have already indicated they will use the funds to build factories in Ohio or Indiana.
Senator Bernie Sanders, a figure of the American left, moved before the vote on the money allocated to the companies.profitable“which, according to him,”It closed 780 factories in 20 years“In the USA. “Keeping them here is a bribe“, he wrote in a press release. President Biden, however, promised on Monday that the law “was not a blank check“. According to him, in order to receive this state aid, the companies must fulfill certain conditions, particularly in terms of salary. “We will not allow them to use these funds to redeem shares or pay dividends“He added, detailing that he will give the green light for the biggest amounts.
Source: Le Figaro
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.