Bill to boost US chip manufacturing clears Senate hurdle

Posted:
in General Discussion edited July 26
A bipartisan bill to boost U.S. chip manufacturing and competitiveness with China has cleared a key Senate hurdle and is set to go up for a final vote before July ends.

Semiconductor
Semiconductor


The legislative package, dubbed "CHIPS-plus," cleared the so-called cloture vote to break the legislative filibuster. CNBC reported Thursday that the vote passed 64-32.

"CHIPS-plus" will provide around $52 billion in funding for U.S. companies making semiconductors and computer chips. It also includes a provision offering a tax credit for investments in domestic chip production.

Additionally, the bill will also provide funding to bolster innovation and the development of other U.S. technologies.

The bill is expected to clear the Senate. After that, it will go before the U.S. House of Representatives. Supporters of the legislation, which is bipartisan, hope that it will be passed in Congress and sent to President Joe Biden's desk before the August recess.

Proponents of the bill believe that it's a vital strategy for bolstering U.S. economic and national security interests. President Biden has called the ongoing global chip shortage, which supporters say the bill can mitigate, a national security issue.

The bill, however, is a stripped-down version of a broader piece of legislation that has been sitting in Congress for months.

"America invented the semiconductor. It's time to bring it home," Biden said at a White House meeting Monday afternoon.

Read on AppleInsider

Comments

  • Reply 1 of 18
    TJJTJJ Posts: 11member
    This is great news if it goes according to plan and if the money is actually used for its intended purpose. We will most assuredly see prices go up here in the United States for computers, Phones and Cars or anything that uses and utilizes these Chips. Currently they are manufactured cheaper outside the United States with cheaper labor costs. As long as the quality and craftsmanship is high then I don’t mind paying more as long as we can stay competitive or surpass other countries. And… if it will create more jobs here in the United States then that is obviously a good thing.
  • Reply 2 of 18
    hexclockhexclock Posts: 1,072member
    It would be nice for us pleabs to see the text of the bill before we decide if it’s a good use of our taxes or not. I assume it’s jam packed with all kinds of pork, just like the American rescue plan and the so called infrastructure bill. 
    How about we take all that unspent Covid money and use that? The Covid money that wasn’t stolen outright anyway. 
    rob53dewmewatto_cobra
  • Reply 3 of 18
    One wonders what the bill had before it was "stripped down"? Probably spending even more, no doubt. Meanwhile, the US defense budget is something like $780 billion a year. Re-homing chip production is decidedly more valuable to national security than another battleship or two.
    iOS_Guy80rob53danoxJaiOh81watto_cobra
  • Reply 4 of 18
    wood1208wood1208 Posts: 2,778member
    Everyone knows that when government funds projects; it is 1/3 efficient. Hope our tax dollars are spend not just wisely but importantly efficiently.
    watto_cobra
  • Reply 5 of 18
    rob53rob53 Posts: 3,010member
    TJJ said:
    This is great news if it goes according to plan and if the money is actually used for its intended purpose. We will most assuredly see prices go up here in the United States for computers, Phones and Cars or anything that uses and utilizes these Chips. Currently they are manufactured cheaper outside the United States with cheaper labor costs. As long as the quality and craftsmanship is high then I don’t mind paying more as long as we can stay competitive or surpass other countries. And… if it will create more jobs here in the United States then that is obviously a good thing.
    Labor is less but China has the majority of raw materials for chips within its border so much less importing than US companies would do. I hope China is watching its hazardous waste stream because this is a huge cost in the US unless trump got rid of all the controls. 
    watto_cobra
  • Reply 6 of 18
    jdwjdw Posts: 1,085member
    Labor and the cost of doing business and securing raw materials in China is so much lower than the USA that I simply cannot see how this teensy tiny olive branch to businesses in the USA would make any difference at all.  If the US truly had a "free market" with Big Brother just sitting in a corner and watching, I have little doubt things could change in a rather short period of time.  But government usually steps in when people complain, then businesses either go out of business or move production overseas to stay alive and profitable.  In other words, the very US government which is now trying to turn the tide is responsible for the tide in the first place. 
    watto_cobra
  • Reply 7 of 18
    bloggerblogbloggerblog Posts: 2,258member
    Tech labor in China is not as cheap as one might think. Chip manufacturing plants are mostly automated, any laborer in such a high-end multi-billion dollar facility would be competent and well trained who does not come cheap no matter what economy they're in. These are high quality people who are in high demand and do get paid well, even in China. The cheap laborer is the one who ends up doing low risk tasks.
    The thing that I do not understand is why does the government need to waste billions in tax dollars for such incentives, these tech companies already have enough funds and resources. All the government needs to do is get out of their way so they can do their thing. Do not tax job creating businesses, taxes from their employees are enough for their State, city, and the wasteful IRS.
    williamlondonwatto_cobra
  • Reply 8 of 18
    hexclockhexclock Posts: 1,072member
    rob53 said:
    TJJ said:
    This is great news if it goes according to plan and if the money is actually used for its intended purpose. We will most assuredly see prices go up here in the United States for computers, Phones and Cars or anything that uses and utilizes these Chips. Currently they are manufactured cheaper outside the United States with cheaper labor costs. As long as the quality and craftsmanship is high then I don’t mind paying more as long as we can stay competitive or surpass other countries. And… if it will create more jobs here in the United States then that is obviously a good thing.
    Labor is less but China has the majority of raw materials for chips within its border so much less importing than US companies would do. I hope China is watching its hazardous waste stream because this is a huge cost in the US unless trump got rid of all the controls. 
    China cares little for its hazardous waste stream. 
    williamlondonwatto_cobra
  • Reply 9 of 18
    hexclock said:
    rob53 said:
    TJJ said:
    This is great news if it goes according to plan and if the money is actually used for its intended purpose. We will most assuredly see prices go up here in the United States for computers, Phones and Cars or anything that uses and utilizes these Chips. Currently they are manufactured cheaper outside the United States with cheaper labor costs. As long as the quality and craftsmanship is high then I don’t mind paying more as long as we can stay competitive or surpass other countries. And… if it will create more jobs here in the United States then that is obviously a good thing.
    Labor is less but China has the majority of raw materials for chips within its border so much less importing than US companies would do. I hope China is watching its hazardous waste stream because this is a huge cost in the US unless trump got rid of all the controls. 
    China cares little for its hazardous waste stream. 
    They do care. But a lot of people lack technology knowhow to look for hazardous waste. For example, American environmentalists try hard to root out lead from toys and Jewelry. This is a learning process. Fifty years ago, US discovered lead is poisonous. Then we have unleaded gas. Before that US gas companies added lead to prevent unwanted explosion in engine chamber. 
    williamlondon
  • Reply 10 of 18
    danoxdanox Posts: 1,174member
    jdw said:
    Labor and the cost of doing business and securing raw materials in China is so much lower than the USA that I simply cannot see how this teensy tiny olive branch to businesses in the USA would make any difference at all.  If the US truly had a "free market" with Big Brother just sitting in a corner and watching, I have little doubt things could change in a rather short period of time.  But government usually steps in when people complain, then businesses either go out of business or move production overseas to stay alive and profitable.  In other words, the very US government which is now trying to turn the tide is responsible for the tide in the first place. 
    The USA government had nothing to do with Motorola, IBM, or Intel making stupid decisions in the chip world that is all on the American CEO’s lack of will and foresight.

    Look at Apple’s current SOC design AMD, Intel and NVIDIA are out of luck they have been disrupted and Qualcomm probably isn’t far behind. The next battle should be against the EU’s misguided attacks being directed at some of the US tech so-called gate keeper companies.

    The next EU Apple smartphone based on the concept of the anti-smartphone, Apple offers just the core Apple iPhone with the core Apple software just for Europe nothing else. No AppStore just the basic core locked down…..Pure Apple.
    https://www.youtube.com/watch?v=02mIRnPJm6g

    Nokia even thinks it’s going to get back into the game.
    edited July 26 watto_cobra
  • Reply 11 of 18
    hexclock said:
    It would be nice for us pleabs to see the text of the bill before we decide if it’s a good use of our taxes or not. I assume it’s jam packed with all kinds of pork, just like the American rescue plan and the so called infrastructure bill. 
    How about we take all that unspent Covid money and use that? The Covid money that wasn’t stolen outright anyway. 
    You know these things are posted for for the public to see right? 

    https://www.commerce.senate.gov/2022/7/view-the-chips-legislation
    tmayronnspheric
  • Reply 12 of 18
    jimh2jimh2 Posts: 434member
    More money flushed down the toilet. There is never any follow to determine the return on money spent. Like other commenters I am sure there is a pile of unrelated garbage spending in it. 
    watto_cobra
  • Reply 13 of 18
    jimh2 said:
    More money flushed down the toilet. There is never any follow to determine the return on money spent. Like other commenters I am sure there is a pile of unrelated garbage spending in it. 

    Rather than speculate why not read the bill and actually be informed?

    https://www.commerce.senate.gov/2022/7/view-the-chips-legislation 
    sphericwatto_cobra
  • Reply 14 of 18
    hexclockhexclock Posts: 1,072member
    hexclock said:
    It would be nice for us pleabs to see the text of the bill before we decide if it’s a good use of our taxes or not. I assume it’s jam packed with all kinds of pork, just like the American rescue plan and the so called infrastructure bill. 
    How about we take all that unspent Covid money and use that? The Covid money that wasn’t stolen outright anyway. 
    You know these things are posted for for the public to see right? 

    https://www.commerce.senate.gov/2022/7/view-the-chips-legislation
    Thank you for posting that. 
    watto_cobra
  • Reply 15 of 18
    sphericspheric Posts: 2,241member
    (edit: Link to the full document has already been posted.

    But seriously: People really need to learn to use their own democracy. Don't they learn these things in school?)
    edited July 27 watto_cobra
  • Reply 16 of 18
    sphericspheric Posts: 2,241member
    hexclock said:
    rob53 said:
    TJJ said:
    This is great news if it goes according to plan and if the money is actually used for its intended purpose. We will most assuredly see prices go up here in the United States for computers, Phones and Cars or anything that uses and utilizes these Chips. Currently they are manufactured cheaper outside the United States with cheaper labor costs. As long as the quality and craftsmanship is high then I don’t mind paying more as long as we can stay competitive or surpass other countries. And… if it will create more jobs here in the United States then that is obviously a good thing.
    Labor is less but China has the majority of raw materials for chips within its border so much less importing than US companies would do. I hope China is watching its hazardous waste stream because this is a huge cost in the US unless trump got rid of all the controls. 
    China cares little for its hazardous waste stream. 
    That has been changing, and when stuff needs to change, China, as a dictatorship, is in a position to change it quickly.
    9secondkox2watto_cobra
  • Reply 17 of 18
    9secondkox29secondkox2 Posts: 1,394member
    Man… I wish I was married to a girl in congress who could have told me about this and invested in Nvidia…

    I wouldn’t dump it to save face though. 
    edited July 27 watto_cobra
  • Reply 18 of 18
    danoxdanox Posts: 1,174member
    spheric said:
    hexclock said:
    rob53 said:
    TJJ said:
    This is great news if it goes according to plan and if the money is actually used for its intended purpose. We will most assuredly see prices go up here in the United States for computers, Phones and Cars or anything that uses and utilizes these Chips. Currently they are manufactured cheaper outside the United States with cheaper labor costs. As long as the quality and craftsmanship is high then I don’t mind paying more as long as we can stay competitive or surpass other countries. And… if it will create more jobs here in the United States then that is obviously a good thing.
    Labor is less but China has the majority of raw materials for chips within its border so much less importing than US companies would do. I hope China is watching its hazardous waste stream because this is a huge cost in the US unless trump got rid of all the controls. 
    China cares little for its hazardous waste stream. 
    That has been changing, and when stuff needs to change, China, as a dictatorship, is in a position to change it quickly.

    Did hear about some the Chinese real-estate companies debt troubles? They some of the owners were told to use their own money to pay the debts…..

    It appears that the price of losing face is six thousand years old in that part of world. The anti-freeze toothpaste dudes paid a higher price ugh….
    edited July 28 watto_cobra
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