Chip Production Shortage | Use Bill For Chip Production | Semiconductor Shortage | USA Decision For Chip Shortage
The bill passed by voting of 222-210. It concludes massive investments designed to increase Chip production (semiconductor) manufacturing in the US.
Democrats on Friday overpowered legislation through the House that they said positions the United States to compete with China financially and on the global stage by boosting the domestic semiconductor industry and cutting up strained supply chains.
The bill passed by voting 222-210. It marks a major step for Biden administration policy, but the legislation is likely to be widely revised as negotiators reconcile differences with what the Senate passed about 8 months ago. President urged lawmakers to crack a deal quickly, saying, “America can’t afford to wait.”
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Nearly 3,000-page bill, not counting points of amendments added this week, includes huge investments designed to increase semiconductor manufacturing in the US. The big-ticket items include about $52 billion (roughly Rs. 3,88,140 crore) in aid and subsidies to help the semiconductor industry and $45 billion (roughly Rs. 3,35,900 crore) to boost supply chains for high-end products.
But Democrats are also ready in other priorities that have raised GOP concerns about the bill’s cost and future. Rep Adam Kinzinger of Illinois is the only Republican member to vote for the measure, while Stephanie Murphy of Florida is the only Democrat party member to vote against it.
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The bill includes 8 billion (roughly Rs. 59,700 crores) for a fund that helps the countries who are developing to adjust to climate change; $3 billion (roughly Rs. 22,400 crores) for facilities to make the US less dependent on Chinese solar components; $4 billion (roughly Rs. 29,900 crores) to boost communities with significantly higher unemployment than the national average; and $10.5 billion (roughly Rs. 78,400 crores) for states to have stock of drugs and medical equipment.
The pandemic has put a lot of pressure on the supply market of semiconductor chips. Some reports show that the supply has fallen from 40 days in 2019 to less than 5 days in 2021. This shows a significant drop in the supply of semiconductor chip production says intel.
One more provision would be a subject more lower-cost products made in China to taxes. At present, imports valued at less than $800 (roughly Rs. 59,700) are removed from expedited processing and taxes. The bill destroys the limit for certain countries, mostly China.
Increasing tensions with China are directly reflected in much of the legislation. In an agreement to problems about the origins of covid-19, the bill directs the president to submit a report to Congress on the likely origin of the virus, the mark of confidence in that checking, and the hurdles of making such as assessment.
In the time, a huge share of semiconductor manufacturing globally has steadily decreased from 37 % in 1990 to about 12% now. The Biden administration and lawmakers are constantly trying to reverse that trend, which industry officials say is driven by foreign competitors receiving major government subsidies.
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