Senate passes bi-partisan bill to battle chip shortage, moves to House (Updated)

Computer chip

Pok Rie, Pexels

Update 7/28/22: The House passed the CHIPS and Science Act by a decisive margin of 243-187 on Thursday, reports the Associated Press. The bill is now headed to President Joe Biden’s desk where it’s expected to be signed into law.

Original story below:

Biden Administration officials say a bi-partisan measure passed by the U.S. Senate could ease a shortage of semiconductor chips for Detroit automakers and take a bite out of inflation.

The Senate plan provides more than $50 billion plus tax credits to companies in the U.S. who would research and build the chips, which appear in everything from motor vehicles to medical equipment. They’ve been in high demand during the pandemic.

China and other countries outside the U.S. currently dominate the chip business.

Following an event in Detroit, U.S. Labor Secretary Marty Walsh said the move could also aid the nation’s economy.

“It won’t necessarily address the issue of inflation tomorrow. But it is about down the road that we’re less dependent on foreign imports,” Walsh says. “We have a tremendous opportunity in this country by bringing back semiconductor manufacturing back to the United States of America, creating more jobs.”

The U.S. House must also approve the measure before President Biden can sign it into law.

Photo Credit: Pok Rie, Pexels

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  • Quinn Klinefelter
    Quinn Klinefelter is a Senior News Editor at 101.9 WDET. In 1996, he was literally on top of the news when he interviewed then-Senator Bob Dole about his presidential campaign and stepped on his feet.