Senate approves $250B bill to boost US technology manufacturing

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The U.S. Senate has approved a major bipartisan industrial bill to boost the country's technology manufacturing and increase competitiveness with China, with some funds going toward computer chip production.

Credit: WikiMedia
Credit: WikiMedia


The $250 billion bill, the U.S. Innovation and Competition Act, passed 68-32 on Tuesday. In its current form, it provides $52 billion for domestic semiconductor manufacturing, a 30% funding boost for the National Science Foundation, and $29 billion to fund a new applied sciences directorate, The Wall Street Journal reported Tuesday.

If passed, the bill could help companies like Apple, which are suffering the effects of a global chip shortage. In May, Apple was among a coalition that lobbied the U.S. for chip manufacturing subsidies.

In addition to the aforementioned funding, the USICA also provides $10 billion to reshape cities and regions into "technology hubs." That money will fund the development of well-paying technology jobs and facilities outside of the coastal areas.

"It's the largest investment in scientific research and technological innovation in generations. It sets the United States on a path to lead the world in the industries of the future," said Senate Majority Leader Chuck Schumer (D-NY).

The passage of the bill follows a delay before the Senate's Memorial Day recess that was caused by some concerns about scope and size from Republican lawmakers. Originally, the bill was built on Sen. Schumer's Endless Frontier Act proposal, which was eventually cut down.

Earlier in 2021, the Biden Administration called the global chip shortage a "national security" issue. In February, President Joe Biden signed an executive order to combat concerns over semiconductor supply problems.

The bill will now head to the House, where it faces a competing piece of legislation, before it can land on President Biden's desk.

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Comments

  • Reply 1 of 8
    jd_in_sbjd_in_sb Posts: 1,594member
    “That money will fund the development of well-paying technology jobs”

    Unless the US can create tech industrial zones with relatively low pay rates like that in China, it will be difficult for the US to be competitive in manufacturing.
    edited June 8 byronl
  • Reply 2 of 8
    flydogflydog Posts: 968member
    jd_in_sb said:
    “That money will fund the development of well-paying technology jobs”

    Unless the US can create tech industrial zones with relatively low pay rates like that in China, it will be difficult for the US to be competitive in manufacturing.
    What you stated makes zero sense since, as you noted, one purpose of the funding is to pay wages.  
    pslice
  • Reply 3 of 8
    tmaytmay Posts: 5,290member
    jd_in_sb said:
    “That money will fund the development of well-paying technology jobs”

    Unless the US can create tech industrial zones with relatively low pay rates like that in China, it will be difficult for the US to be competitive in manufacturing.
    Assembly is different than manufacturing, and my guess is that the U.S. isn't going to enter into high volume assembly, such as phones. Still with a quarter of China's population, we are 2nd in manufacturing, followed by Japan, and I would argue that U.S. will be reshoring, and re-sourcing, much of the manufacturing that is outsourced to China today; a net loss for China.  


    https://www.weforum.org/agenda/2020/02/countries-manufacturing-trade-exports-economics/

    https://reshoringinstitute.org/five-predictions-for-the-manufacturing-industry-in-2021/


    edited June 8
  • Reply 4 of 8
    dewmedewme Posts: 3,698member
    This is good but the only long term sustainable means to improving the US’s competitiveness has to include fundamental changes in primary, secondary, and vocational (conventional and modern) education. 

    Creating more bureaucracy will not raise the tide. Empowering more kids with the skills needed to fill the jobs in technology and modern manufacturing will. 

    Some degree of software development knowledge, including coding practices and using code as a basic tool to help solve domain specific problems, needs to be part of every curriculum.


    tmay
  • Reply 5 of 8
    gatorguygatorguy Posts: 23,006member
    So this is almost humorous:

    "Chinese lawmakers urged (the US) Congress to “immediately stop” progress on the bill, the official Xinhua News Agency reported Wednesday, citing a statement from a National People’s Congress committee that handles foreign affairs.

    The bill “smears China’s development path and domestic and foreign policies,” the statement said, and “interferes in China’s internal affairs under the banner of innovation and competition.”

    tmayjony0
  • Reply 6 of 8
    KuyangkohKuyangkoh Posts: 681member
    gatorguy said:
    So this is almost humorous:

    "Chinese lawmakers urged (the US) Congress to “immediately stop” progress on the bill, the official Xinhua News Agency reported Wednesday, citing a statement from a National People’s Congress committee that handles foreign affairs.

    The bill “smears China’s development path and domestic and foreign policies,” the statement said, and “interferes in China’s internal affairs under the banner of innovation and competition.”

    Just pay the lawmakers and BOOM 💥, China wins
  • Reply 7 of 8
    tmaytmay Posts: 5,290member
    dewme said:
    This is good but the only long term sustainable means to improving the US’s competitiveness has to include fundamental changes in primary, secondary, and vocational (conventional and modern) education. 

    Creating more bureaucracy will not raise the tide. Empowering more kids with the skills needed to fill the jobs in technology and modern manufacturing will. 

    Some degree of software development knowledge, including coding practices and using code as a basic tool to help solve domain specific problems, needs to be part of every curriculum.


    Pretty much describes what happened during the Cold War, and the Space Race, and why the U.S. still carries a massive advantage from post WWII, some 75 years ago, when it had over 50% of world wide manufacturing.
    edited June 9
  • Reply 8 of 8
    dewme said: Creating more bureaucracy will not raise the tide. Empowering more kids with the skills needed to fill the jobs in technology and modern manufacturing will. 
    It's almost as if corporate America could use it's record profits to provide the training to American citizens and reap the benefits. 
    FileMakerFeller
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