CHIPS and Science Act has been passed by the United States Congress; $52 billion of the $280 billion act will be used to encourage chip manufacturers to operate in the US and build semiconductors.
The act was passed in a 243-187 vote and it is approved by the White House. It’s great news for US-based technology companies, especially the world’s one of the largest chipmakers: Intel. The CPU-maker has been facing issues at home due to the lack of government support after investing heavily in chipmaking plants in the US.
Intel has been having a tough time across all departments and its shares sank down after missing Q2 2022 targets badly, with little to no hope to hit Q3 goals. Intel CEO Pat Gelsinger is quite happy with the approval of funding. Gelsinger believes this move will “help ensure continued American leadership in semiconductor manufacturing and R&D,”
The experienced CEO added: “Congress has done its part, and now we are going to do ours. I’m excited to put shovels in the ground as Intel moves full speed ahead to start building in Ohio.”
What Is the CHIPS Act?
The CHIPS part is an acronym that stands for“Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund”, however, it will obviously affect the whole world as semiconductors are used in all modern electronics, from smartphones to PC and console hardware, from cars to even white appliances, and there’s been a massive shortage due to a number of reasons, the main ones being the Covid-19 pandemic, logistics, and the production capacity.
According to industry experts, The United States is the leading country in this area, but China follows closely and this bill wants to ensure The US stays ahead of the competition. Of course, this will make the US significantly less reliant on the far east, in regard to this specific market.
The bill also mentions The US National Science Foundation receiving billion in funding “in order to help with semiconductor research and manufacturing, as well as workforce development programs.”
The changes coming with the bill won’t affect everyday consumers just yet, as it takes years for the final products to be on the market once the process starts.
