Bill to boost semiconductor industry passes key Senate test

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The bill provides about $52 billion in grants and other incentives for the semiconductor industry as well as a 25% tax credit for those companies that build chip plants, or fabs, in the U.S.

WASHINGTON — The Senate on Tuesday advanced a $280 billion bill designed to boost the semiconductor industry in the United States and to accelerate high tech research that backers say will be critical to the economy in future decades.

The cost of the tax break is projected to be about about $24 billion over 10 years. The bill also authorizes about $200 billion to enhance scientific research over the same timeframe. “At a time when the working families of this country are falling further and further behind while the very rich are getting much richer, let us get our priorities right,” said Sen. Bernie Sanders, I-Vt.in both parties who say the investment is critical to U.S. innovation and staying ahead of economic rivals in coming decades, namely China.

Senate Republican leader Mitch McConnell led a group of 17 Republicans senators who voted to limit debate and advance the bill. While some Republicans have voiced concerns about the spending in the bill, others have emphasized the need to address national security vulnerabilities resulting from the U.S. reliance on plants in Taiwan and South Korea for the most advanced computer chips.

 

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