The US Senate voted 64-32 on Tuesday to advance legislation to boost domestic semiconductor manufacturing.
The legislation, which involves at least $52 billion in spending commitments, is widely viewed as attempt to to address technological competition with China.
The bill provides about $52 billion in subsidies for US semiconductor production as well as an investment tax credit for chip plants estimated to be worth $24 billion.
The Creating Helpful Incentives to Produce Semiconductors for America Act, or CHIPS Act, would provide the subsidies as well as tens of billions more to support regional technology hubs and a tax credit covering 25% of investments.
The Senate is expected to vote on final passage in coming days and the US House could follow suit as soon as later this week.
Supporters have said the legislation is crucial to address long-term stability and growth of the US chip industry, while critics have decried the subsidies as “corporate welfare” for rich tech companies.
- Reuters, with additional editing by George Russell