US lawmakers propose US$22.8 billion in aid to semiconductor industry

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REUTERS: A bipartisan group of U.S. lawmakers on Wednesday introduced a bill to provide more than US$22.8 billion (17.88 billion pounds) in aid ...

REUTERS: A bipartisan group of U.S. lawmakers on Wednesday introduced a bill to provide more than US$22.8 billion in aid for semiconductor manufacturers, aiming to spur the construction of chip factories in America amid a strategic technology rivalry with China.

Chip factories can cost up to US$15 billion to build, with much of the expense in the form of pricey tools. The proposal would create a 40per cent refundable income tax credit for semiconductor equipment, US$10 billion in federal funds to match state incentives to build factories, and US$12 billion in research and development funding.

Senators John Cornyn, a Texas Republican, and Mark Warner, a Virginia Democrat, introduced the bill in the Senate. Aides to Representatives Michael McCaul, a Texas Republican, and Doris Matsui, a California Democrat, said the two planned to introduce a version in the U.S. House of Representatives on Thursday.

While some U.S. firms such as Intel Corp and Micron Technology Inc still make chips in the United States, the industry's center of gravity has shifted to Asia, where Taiwan Semiconductor Manufacturing Co has more than half of the overall market for contract manufacturing chips and an even stronger hold on the most advanced chips.

Firms, including iPhone maker Apple Inc, Qualcomm Inc and Nvidia Corp all rely on TSMC and other Asian foundries to manufacture their chips.The dual shocks of the novel coronavirus pandemic, which disrupted chip supply chains, and Beijing's' move to strengthen its control over Hong Kong have prompted alarm in Washington over having advanced chip manufacturing concentrated in Taiwan, a U.S.

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US lawmakers propose US$22.8b in aid to semiconductor industry to spur construction of local chip factoriesWASHINGTON (REUTERS) - A bipartisan group of US lawmakers on Wednesday (June 10) introduced a Bill to provide more than US$22.8 billion (S$31.6 billion) in aid for semiconductor manufacturers, aiming to spur the construction of chip factories in America amid a strategic technology rivalry with China.. Read more at straitstimes.com.
Fonte: The Straits Times - 🏆 8. / 63 Leggi di più »