Home Views Semiconductor

CHIPS Act will transform the semiconductor sector

Assif Shameen
Assif Shameen7/28/2022 08:24 PM GMT+08  • 10 min read
CHIPS Act will transform the semiconductor sector
Rare bipartisan cooperation to help pass the CHIPS Act on the US Senate floor on July 27 / Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

On July 27, the US Senate finally passed the much-heralded CHIPS Act, a bill that will pave the way for government subsidies for the production of high end semiconductors. There was rare bipartisan 64-33 support for the US$280 billion ($387 billion) legislation that could help America build up critical tech capacity to help boost its economy and national security.

The landmark bill is probably the most important piece of US legislation that will pass both houses before the November’s midterm elections that the Republican Party is poised to win — taking control of both the chambers ahead of the 2024 presidential elections in which former President Donald Trump will likely be on the ticket. The Biden administration was able to push the legislation through with some Republican support despite vociferous opposition from the progressive wing of his own party. Senator Bernie Sanders, for example, has called the bill “a blank check” for the cash rich semiconductor industry.

The CHIPS Act (short for the Creating Helpful Incentives to Produce Semiconductors for America Act) would set aside US$52 billion in subsidies — US$39 billion for investment in chip foundries for advanced technology, US$2 billion of subsidies US chip industry and US$11 billion for investment in chip R&D and workforce development.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.