CHIPS Act passes House, secures $52B for semiconductor industry

Abstract

Following two years of congressional gridlock and two different bills, the House of Representatives on Thursday passed the CHIPS Act, which doles out $52 billion to semiconductor manufacturers looking to expand their presences in the U.S. The 243-187 vote was broadly across party lines, with Democrats voting to advance the bill and all but 24 Republicans voting to defeat the legislation. Massive manufacturing-related construction projects in the U.S. are depending on CHIPS Act funding in order to move forward. Thomas Sonderman, president and CEO of Minnesota-based SkyWater Technology, said the company's $1.8 billion semiconductor plans hinged on CHIPS Act funding. Samsung, the South Korea-based electronics company, proposed 11 chip plants worth a whopping $191 billion in Texas, also dependent on the CHIPS Act passage. Taiwan Semiconductor Manufacturing Company's $12 billion computer chip factory in Arizona. The CHIPS Act, and the $52 billion that goes with it, are hitching a ride on a much larger bill that has grown exponentially prior to the Senate debate and vote. The 1,000-page CHIPS & Science Act also includes provisions dedicated to science and research across different disciplines outside of just construction for $200 billion, according to the Wall Street Journal.