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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Senate passed legislation Wednesday to pump billions of dollars into the domestic semiconductor industry. Proponents of the measure say the funding is necessary to help the U.S. catch up with countries such as China, which have spent far more to develop their semiconductor industries.
The Senate voted 64-33 to pass the CHIPS-plus Act, which includes more than $52 billion for U.S. computer chip manufacturers and billions of dollars in potential tax credits, plus funding for development of chip-related technologies. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors.
The measure, which now heads to the House of Representatives, is more than a year in the making, having been stalled for several months as legislators haggled over the particulars of the bill.
Intel Corporation (NASDAQ:INTC) (Santa Clara, California) and other developers of big semiconductor manufacturing plants in the U.S. have urged the passage of the bill before Congress recesses early next month. Intel, which plans to build two chip-manufacturing factories in New Albany, Ohio, with an initial investment of more than $20 billion, had cancelled a groundbreaking ceremony in July pending the outcome of the bill. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing project and plant databases can click here for the project reports and click here for the plant profile. For more information, see June 29, 2022, article - Congress Urged to Pass $52 Billion in Semiconductor Funding.
Industrial Info is tracking nearly 90 semiconductor projects, worth more than $128 billion, in the U.S. Subscribers can click here for a list of detailed project reports. Texas leads the pack in terms of spending, followed by Arizona.
Click on the image at right for a chart showing semiconductor project spending in the five top states.
Industry groups such as the National Association of Manufacturers (NAM) cheered the Senate's passage of the bill.
"The CHIPS-Plus Act will deliver a powerful boost to manufacturers' competitiveness. Manufacturers across all sectors rely on access to chips, so this bill will help strengthen American supply chains thanks to its investments in domestic semiconductor production--as well as its funding for programs to support the STEM (science, technology, engineering, and mathematics) workforce, advanced technology development, excavation of critical minerals, clean energy and more," said NAM Chief Executive Officer Jay Timmons in a press release.
Backers of the bill say it will reduce reliance on imported chips.
During a virtual roundtable meeting on Monday with President Joe Biden and a group of industry leaders, Secretary of Commerce Gina Raimondo said, "We used to make 40% of the world's chips; we make about 12% now." On top of that, "we make essentially none of the leading-edge chips, and we're utterly dependent upon Taiwan for the leading-edge chips. And the reality is, while we have invested nothing to spur domestic chip manufacturing, China has invested more than $150 billion to build their own domestic capacity. So we're very much behind."
National Security Advisor Jake Sullivan said that "for the first time, we face a competitor that has the means, the resources, and the commitment to overtaking U.S. technological leadership if we don't up our game."
And while the Biden administration and Republican state leaders in Texas rarely are seen to agree on much of anything, Texas Governor Greg Abbott also is urging passage of the bill.
"The federal incentives in the CHIPS Act of 2022 will help Texas leverage our investments in the semiconductor industry, and the tax provisions will benefit the semiconductor-related companies already operating in the state, while attracting others that are looking to expand and grow," Abbott said in a press release.
In Texas, Industrial Info is tracking Texas Instruments Incorporated's (NASDAQ:TXN) (Dallas, Texas) massive grassroot semiconductor wafers manufacturing plant project in Sherman. Phase I is planned for completion in third-quarter 2025 and is part of a multi-phase, $30 billion plan on a 4.7 million-square-foot manufacturing campus to produce 300-millimeter semiconductor wafers. Subscribers can click here for the project report.
But not everybody is in favor of the bill. Senator Bernie Sanders (I-Vermont) has branded the measure as a blank check to big companies who really don't need the money.
"When the government adopts an industrial policy that socializes all the risk and privatizes all the profits, that is crony capitalism," Sanders said in a press statement. He said the five biggest semiconductor companies that would likely receive the lion's share of the funding made $70 billion in profits last year.
"Let us rebuild the U.S. microchip industry, but let's do it in a way that benefits all of our society, not just a handful of wealthy, profitable and powerful corporations," Sanders said.
Biden said on Monday that companies that receive CHIP-plus funding won't be allowed to use the money to invest overseas or buy back stock or issue dividends.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Senate voted 64-33 to pass the CHIPS-plus Act, which includes more than $52 billion for U.S. computer chip manufacturers and billions of dollars in potential tax credits, plus funding for development of chip-related technologies. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors.
The measure, which now heads to the House of Representatives, is more than a year in the making, having been stalled for several months as legislators haggled over the particulars of the bill.
Intel Corporation (NASDAQ:INTC) (Santa Clara, California) and other developers of big semiconductor manufacturing plants in the U.S. have urged the passage of the bill before Congress recesses early next month. Intel, which plans to build two chip-manufacturing factories in New Albany, Ohio, with an initial investment of more than $20 billion, had cancelled a groundbreaking ceremony in July pending the outcome of the bill. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing project and plant databases can click here for the project reports and click here for the plant profile. For more information, see June 29, 2022, article - Congress Urged to Pass $52 Billion in Semiconductor Funding.
Industrial Info is tracking nearly 90 semiconductor projects, worth more than $128 billion, in the U.S. Subscribers can click here for a list of detailed project reports. Texas leads the pack in terms of spending, followed by Arizona.
Industry groups such as the National Association of Manufacturers (NAM) cheered the Senate's passage of the bill.
"The CHIPS-Plus Act will deliver a powerful boost to manufacturers' competitiveness. Manufacturers across all sectors rely on access to chips, so this bill will help strengthen American supply chains thanks to its investments in domestic semiconductor production--as well as its funding for programs to support the STEM (science, technology, engineering, and mathematics) workforce, advanced technology development, excavation of critical minerals, clean energy and more," said NAM Chief Executive Officer Jay Timmons in a press release.
Backers of the bill say it will reduce reliance on imported chips.
During a virtual roundtable meeting on Monday with President Joe Biden and a group of industry leaders, Secretary of Commerce Gina Raimondo said, "We used to make 40% of the world's chips; we make about 12% now." On top of that, "we make essentially none of the leading-edge chips, and we're utterly dependent upon Taiwan for the leading-edge chips. And the reality is, while we have invested nothing to spur domestic chip manufacturing, China has invested more than $150 billion to build their own domestic capacity. So we're very much behind."
National Security Advisor Jake Sullivan said that "for the first time, we face a competitor that has the means, the resources, and the commitment to overtaking U.S. technological leadership if we don't up our game."
And while the Biden administration and Republican state leaders in Texas rarely are seen to agree on much of anything, Texas Governor Greg Abbott also is urging passage of the bill.
"The federal incentives in the CHIPS Act of 2022 will help Texas leverage our investments in the semiconductor industry, and the tax provisions will benefit the semiconductor-related companies already operating in the state, while attracting others that are looking to expand and grow," Abbott said in a press release.
In Texas, Industrial Info is tracking Texas Instruments Incorporated's (NASDAQ:TXN) (Dallas, Texas) massive grassroot semiconductor wafers manufacturing plant project in Sherman. Phase I is planned for completion in third-quarter 2025 and is part of a multi-phase, $30 billion plan on a 4.7 million-square-foot manufacturing campus to produce 300-millimeter semiconductor wafers. Subscribers can click here for the project report.
But not everybody is in favor of the bill. Senator Bernie Sanders (I-Vermont) has branded the measure as a blank check to big companies who really don't need the money.
"When the government adopts an industrial policy that socializes all the risk and privatizes all the profits, that is crony capitalism," Sanders said in a press statement. He said the five biggest semiconductor companies that would likely receive the lion's share of the funding made $70 billion in profits last year.
"Let us rebuild the U.S. microchip industry, but let's do it in a way that benefits all of our society, not just a handful of wealthy, profitable and powerful corporations," Sanders said.
Biden said on Monday that companies that receive CHIP-plus funding won't be allowed to use the money to invest overseas or buy back stock or issue dividends.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
