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Semiconductor market to get a boost through $52Bn US fund

Following up on what we had previously reported in a related article, Chuck Schumer, the Democratic Leader in the United States Senate, has on Tuesday unveiled the revised version of the Bipartisan Legislation. This includes a fund of a massive $52 billion, which, he proposes be set aside to expand the production and research scope of semiconductor chips, over the next 5 years.

US Senate Proposes Semiconductor Bill

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Boost Up Semiconductor Production

The proposal falls under the umbrella of emergency fundings, and will be brought up in a revised bill that will be span than 1,400 pages, and will most likely be put forth this week. The main aim of the bill is to set up a fund of $120 billion, to boost basic and advanced technological research in the States, so that it can better come to par with the likes of China.

Schumer, during his proposal, cited the problems that have arisen for the US technology industry in the face of the worldwide chip shortage. He added that the country would do better to manufacture the chips on their own, instead of relying on other countries. He claims that his amendment will make sure the country never has to face the shortage again.

Emergency Funding

Out of the $52 Bn, $49.5 billion will be put aside for the emergency supplemental appropriations to support the provisions for chips that had been included in the National Defense Authorization Act of 2021. The focus will especially be on those chips which need separate processes for funding.

President Joe Biden is among the supporters of the amendment, who, by the way, are citing the fact that 37% of the world’s microelectronics and semiconductors production in 1990 belonged to US, while it has falled to just 12% as of now.

The Outline for the Fund

The bill summary has said that the country’s economic and national security needs to immediately fund the programme, especially since China is currently investing more than $150 billion on the same.

The fund will include $39 billion for R&D and production, along with $10.5 billion toward toward National Semiconductor Technology Center, among other centers. $1.5 Bn will be kept aside for emergency funding, to help expand the reach of Western alternatives to China’s leading brands. Finally, the bill also calls for a ban on the download of TikTok to government devices, as a means of tightening security.

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