Source: The Economic Times

Bill Passed: Billions to be Invested in Bolstering Chip Production
A 'compromise' bill still awaits negotiation before implementation

“Intel is putting its chips on the table, investing in US semiconductor capacity and capability,” remarks Pat Gelsinger, CEO of Intel.

Ahead of the chip shortage crisis’ occurrence, Intel pledged to invest twenty billion dollars in an upcoming, strengthening processor manufacturing facility outside Columbus, Ohio.

The CHIPS Act worth $52 billion, which was yet to be formally passed despite having completed it in the Senate, is to be officially announced. It is being said that with the high-hope generating valuation and expectation from the public, it is likely to be ready to fund the upcoming ventures of Intel, which the investors are hoping to be long-term and highly revenue generating. All in all, the CHIPS Act is a trial towards spurring the chip-manufacturing system in the United States, making it relatively less dependent on foreign equipments, such as that of China, an adversary in what is now called the “New Cold War’.

Source: google images
The CHIPS Act is worth $52 billion

As of January 2022, the US House of Representatives had fortunately passed the bill for the CHIPS Act along with allocating as much as $300 billion to investments in the technological sphere giving it a much needed incentive. This was in order to enhance the arena of semiconductor manufacturing in the United States.

In order to challenge the ever-growing technological influence of Chinese equipments, The America COMPETES Act of 2022 cleared the much awaited bill. This would give access to the source which would provide vital subsidies for production and research in the US trade policy.

Along with its initial $52 billion provided for previously promised subsidies in the design department during the production of the chips, an additional $45 billion is allocated for giving a boost to the nation’s supply chain infrastructure for essential and critical items.

This was an important step towards finally give the American industry the independence and monopoly to produce, as well as optimise on its own products and essential services instead of relying on the Chinese technological industry. This contributed to the long awaited boycott towards the foreign equipment which were considered threatening.

However, the Democrats were accused of wasting billions of dollars on measures and ways to eradicate China’s influence on the economy, leading to a greater expenditure than China itself on the global technology market.

Additionally, the legislation passed would grant support to welfare and workforce development programmes, along with funding research efforts such as the STEM education and National Science Foundation, and other programmes.

The overt differences between the two chambers poses as a threat to the establishment of the agenda. The negotiation required to not only fund the cause of the research, but also to bring about a united front against China is being delayed by their ideological differences.