The U.S. Senate voted 63-32 on Tuesday for a $280 billion package to boost funding for domestic microchip production, a priority for the Biden administration and companies such as Intel and IBM. This bill is meant to entice companies to expand chip manufacturing in the U.S.
Included in the $280 billion package is $52.7 billion for microchip manufacturing, a 25 percent tax credit for investments in semiconductor manufacturing, and $1.5 billion for the development of open architecture. In addition, $11 billion will go to the U.S. Department of Commerce and the remaining $200 billion will be put towards scientific research.
The overall goal of this bill is to reduce the risk of supply chain disruption with the hope of having a better competitive advantage overseas.
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