Industry groups praise Senate passage of CHIPS Act

Industry groups praised Wednesday's Senate passage of the CHIPS and Science Act, which aims to boost domestic semiconductor production.

The Senate voted 64-33 in favor of passing the $280 billion bill, which includes more than $50 billion in subsidies for chipmakers building new foundries in the United States, $170 billion in incentives for research and development, as well as tax incentives.

The CHIPS Act came in response to a semiconductor crisis driven by the pandemic lockdowns and a massive increase in demand. The situation has been exacerbated by severe weather, supply chain challenges, and the Russia-Ukraine war.

“Semiconductors and computer chips make our economy and industry run—right down to the trucks we drive—and we have seen the consequences of decades of neglecting domestic manufacturing of these critical components,” Bill Sullivan, the American Trucking Associations’ executive vice president for advocacy, said in a press release Wednesday, urging the House of Representatives to follow suit and pass the legislation. The House was expected to take up the bill Thursday.

The U.S. Chamber of Commerce urged passage as well.

“Semiconductors are essential to nearly every sector of the economy. Unfortunately, demand for chips has outstripped supply, creating a global shortage and resulting in lost growth and jobs here at home,” Neil Bradley, executive vice president and chief policy officer for the U.S Chamber, said earlier this month. “Passing this legislation to incentivize semiconductor research, design, and manufacturing in the United States will strengthen our economy and our national security.”