The U.S. wants to spend $52 billion (5163645)

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The U.S. wants to spend $52 billion

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The threat of China looms so large that it has united Washington into advancing discussions on funding an unprecedented package of subsidies for the U.S. semiconductor sector.

On Tuesday, the Senate voted 64-34 to advance debate on the CHIPS Act, a bill that earmarks $52 billion in incentives for chipmakers to build plants in the U.S.—viewed by many in Washington as critical to shoring up American supply chains and the U.S.'s ability to counter China in the global tech arms race. Tuesday’s procedural vote prepares the Senate and House of Representatives for a vote on the legislation by the end of next week.

he CHIPS Act is "about national security, [which] we can't put a price on," U.S. Commerce Secretary Gina Raimondo told PBS on Tuesday. “We need to make more of these [chips] on our shores [to] protect our people,” Raimondo said. CHIPS advocates say the funding will lessen America’s reliance on Asian chip suppliers—a crucial vulnerability that China could exploit—and rebuild its once-powerful chips manufacturing sector.

There’s one catch, though. The tens of billions in subsidies to build chip plants on U.S. soil is unlikely to reduce its dependence on Asia, especially in the short-run, let alone transform it into a semiconductor manufacturing powerhouse. The U.S. likely needs hundreds of billions more in funding, and decades, to secure its chips supply and catch-up with Asian chipmakers in any meaningful way, some experts say, prompting the question of whether onshoring chip manufacturing is the best way to achieve its goals.

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The threat of China looms so large that it has united Washington into advancing discussions on funding an unprecedented package of subsidies for the U.S. semiconductor sector.

On Tuesday, the Senate voted 64-34 to advance debate on the CHIPS Act, a bill that earmarks $52 billion in incentives for chipmakers to build plants in the U.S.—viewed by many in Washington as critical to shoring up American supply chains and the U.S.'s ability to counter China in the global tech arms race. Tuesday’s procedural vote prepares the Senate and House of Representatives for a vote on the legislation by the end of next week.

he CHIPS Act is "about national security, [which] we can't put a price on," U.S. Commerce Secretary Gina Raimondo told PBS on Tuesday. “We need to make more of these [chips] on our shores [to] protect our people,” Raimondo said. CHIPS advocates say the funding will lessen America’s reliance on Asian chip suppliers—a crucial vulnerability that China could exploit—and rebuild its once-powerful chips manufacturing sector.

There’s one catch, though. The tens of billions in subsidies to build chip plants on U.S. soil is unlikely to reduce its dependence on Asia, especially in the short-run, let alone transform it into a semiconductor manufacturing powerhouse. The U.S. likely needs hundreds of billions more in funding, and decades, to secure its chips supply and catch-up with Asian chipmakers in any meaningful way, some experts say, prompting the question of whether onshoring chip manufacturing is the best way to achieve its goals.

Abdullah bogail