On Thursday, a group of bipartisan lawmakers has introduced a measure to strengthen chip manufacturing in the United States. This measure will both lure high tech supply chains and add to efforts to champion the sector back to the United States.
The measure is backed by key Republican Tom Cotton and Senate Democrat Chuck Schumer. It will offer $15 billion in federal grants to the states. This will help build, expand, and modernize R&D facilities and domestic semiconductor manufacturing.
Moreover, this measure will authorize $5 billion in federal dollars towards public-private projects to build and modernize fabs. They will produce secure and specialized microelectronics to be used by the federal government for critical infrastructure.
Additionally, $5 billion will be allocated as grants to federal agencies to foment R&D in the sector. It was offered as an amendment to the National Defense Authorization Act. The act authorizes the spending of the U.S. military to be used as a vehicle for a broad range of policy matters.
On Monday, a Senate aide said the bill will be introduced as a standalone to bolster its chances.
Many U.S. firms including Intel and Micron Technology are still making chips in the U.S. Taiwan Semiconductor Manufacturing Co controls more than half of the overall market for contract manufacturing chips. It also has a stronger hold on the most advanced chips.
The bill was introduced this month by Republican Senator John Cornyn and Democratic Senator Mark Warner to provide more than $22.8 billion in aid for semiconductor manufacturers.
Semiconductor Industry Association has welcomed the move while many overseas governments have offered aggressive incentives.