CHIPS act passes US Congress
US Congress has passed the CHIPS and Science act(opens in new tab). The package, worth $280 billion, includes $52 billion in subsidies to entice companies to manufacture semiconductors in the United States. It also includes a whopping $200 billion for research into cutting edge scientific fields, including quantum computing, AI, and robotics.
The bill passed with bipartisan support in the Senate with a vote of 64 to 33, and was approved by the House with a vote of 243 to 187. Its ultimate goal is to restore American technological leadership, not just for commercial reasons, but also broader strategic reasons including reduced reliance on manufacturing in Asia.
Make no mistake, advanced chipmaking technology is an arms race. The US maintains an advantage over China when it comes to chip-making technology, and this bill aims to keep it that way. Military applications will be at the forefront of the US government's mind. Things like missiles, drones, signal intelligence and communications all rely on advanced chipmaking tech, and countries obviously want to keep their tech secrets in-house.
Two companies with US-based facilities include Intel and Micron(opens in new tab). Micron previously announced plans(opens in new tab) to invest $150 billion into US-based research, development, and manufacturing. It's been lobbying Congress to pass the bill so it can forge ahead with its plans.
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This injection of funds will come at a good time for Intel. Last week
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