NewsNational

House passes bill boosting microchip production, improving supply chain

The bill includes funding for chip and solar component production.
US China Trade
Posted at 9:53 AM, Feb 04, 2022
and last updated 2022-02-04 14:20:08-05

WASHINGTON, D.C. — The House passed a bill Friday aimed at boosting microchip production and improving the supply chain.

The America Competes Act is also aimed at revitalizing research and manufacturing.

The legislation was approved on a 222-210 vote.

It includes $52 billion in funding to help the semiconductor industry address the microchip backlog, as well as $45 billion to enhance supply chains.

The United States only makes 12% of the world’s chips.

Leaders at Intel tell CNET they expect the chip shortage to continue through 2022 and gradually end by 2023.

The shortage has affected supply and availability of products including cars, gaming consoles, and every day items like microwaves, televisions and pacemakers.

In an effort to compete with China, the bill also includes $3 billion to make the U.S. less reliant on Chinese solar companies.

The bill’s Senate counterpart, the US Innovation and Competition Act of 2021, was passed in June of 2021.

A conference committee will now reconcile the differences between the two bills.