On Wednesday, July 27, 2022, The U.S. Senate voted to approve the Chips and Science Bill, in a bid to bolster the United State’s technological competitiveness against China. Passed with 64-33 bipartisan support, the Chips-Plus Bill authorizes approximately $280 billion for U.S. manufacturing, including $52 billion in subsidies for the U.S. semiconductor industry.
While the Bill will head to the House and President Joe Biden’s desk in early August, 2022, the legislation has gained bipartisan support. Both Democrats and Republicans have grown increasingly concern over chip shortages in the U.S., a concern that has only grown since the COVID-19 pandemic. Though the more expanded version of the bill failed in the House in 2021, lawmakers from both parties banded together in this updated version. The goal of the bill is to address two major issues: the United States technological competition with China and the global supply chain.
While the legislation is aimed at addressing the semiconductor chip shortage, President Biden indicated it is crucial to our national security by making the US less reliant on China for manufacturing. After the senate vote on Wednesday, President Biden lauded Chips-Plus as “an historic bill that will lower costs and create jobs” and lead to “more resilient American supply chains, so we are never so reliant on foreign countries for the critical technologies that we need for American consumers and national security.”
President Biden also believes the financial implications of the bill will lower costs for the U.S. consumer on everything from cars to dishwashers. It also authorizes billions of dollars to technological education and innovation, including additional funding for the National Science Foundation, the Department of Commerce, and the National Institute of Standards and Technology.
Senator Bernie Sanders (D-VT) was the lone Democrat to vote against it, calling it the “blank check” for profitable chip makers.
Raj Tulshan, Founder of Loan Mantra, enjoys general optimism for the bill to provide success on the global stage and for the individuals who make up the U.S. small business community, “This bill is a signal to the market that we need capable individuals to solve significant supply issues and to help the U.S. to remain a global superpower and innovator. I am confident that our entrepreneurs will answer that call.”