Biden is expected to sign the bill into law next Tuesday
U.S. President Joe Biden will sign the Chip and Science Act into law on Tuesday, providing subsidies and incentives for the U.S. semiconductor industry, the White House said Wednesday.
The U.S. House of Representatives passed the bill on Thursday Eastern time, after the Senate first approved it. The bill now only needs Biden to sign it into law.
The America's Critical Chip Act will become law next week
The Chip and Science Act is aimed at alleviating persistent chip shortages in recent years and strengthening U.S. chip manufacturing capabilities.
According to the report,The bill is expected to provide about $52 billion in government subsidies for semiconductor research and production in the United States. The bill also includesAn investment tax credit for chip factories, estimated to be worth $24 billion.
The bill also authorizes $200 billion over 10 years to promote U.S. scientific research into the chip industry. But Congress would still have to pass separate appropriations bills to fund the spending.
"This bill will strengthen our efforts to manufacture semiconductors right here in the United States," Mr. Biden said Tuesday.
The ministry stressed that it would limit the size of subsidies
Despite the bill's passage in Congress, some lawmakers have expressed concern that the government is subsidizing the already profitable chip companies too much.
Eastern time on Friday, the Commerce Department said it would limit the government subsidies on semiconductor manufacturing scale, make sure it's "no more than the project operation in the United States would put amount", and added that the ministry will stop "between the state and local competitive subsidy", and do not allow firms to take advantage of these money thickening of their profits.
Pramila Middot, chairwoman of the Progressive Caucus in the U.S. Congress; Progressive Caucus said the group expressed concern that chip companies would use the money to buy back stock or pay dividends, though in a meeting with Commerce Secretary Gina & Middot; After lengthy negotiations in Raimondo, the group backed the legislation.