Law Investing in Domestic Semiconductor Manufacturing Act: Signed into Law 8/9/2022

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Updated Post 7/28/22
Passed in the House 243-187. On to the president for signing:

Congress passes bill boosting US semiconductor production
CNN

The House of Representatives on Thursday passed a long-awaited bill aimed at boosting US semiconductor production in a bid to increase American competitiveness, a bipartisan achievement that will send tens of billions of dollars into American manufacturing and scientific research.

The final vote was 243-187 with one Democrat, Rep. Sara Jacobs of California, whose family founded the Qualcomm telecom company, voting present. Twenty-four Republicans crossed over to join Democrats in backing the bill, despite House GOP leadership whipping against the package.
The bill passed the Senate on Wednesday with broad bipartisan support, meaning it now goes to President Joe Biden to be signed into law.
The vote was closer than originally anticipated. Following Senate Democrats' announcement of a deal on Wednesday evening for a separate economic package, Republican sources told CNN that House GOP leaders would whip against the semiconductor legislation, reversing their earlier stance.


The legislation is aimed at addressing a semiconductor chip shortage and making the US less reliant on other countries such as China for manufacturing. Supporters say the measure is important not only for US technological innovation, but for national security as well.



Updated Post 7/26/22

Bill passed in the senate today. Was the key thing they were working through this week before the August recess.
Senate passes bipartisan bill investing $52 billion in US semiconductor production
CNN
The Senate voted Wednesday to pass a long-awaited bill aimed at boosting US semiconductor production in a bid to increase American competitiveness.

It passed with broad bipartisan support, 64 to 33.

The measure now goes to the House for approval before it can be sent to President Joe Biden for his expected signature.

Original Post 7/19/22
So one of the major items on the senate docket is a semiconductor investment bill. Though seen as a bipartisan initiative, McConnell has come out recently threatening to try to pull back GOP votes for this bill if Democrats continue to push for a reconciliation bill with Build back better. This seems to be an empty threat however or something he can’t control. Schumer is scheduling a procedural vote this Tuesday and a real vote expected next week. A summary of the bill

Chips Bill Gains Steam in Senate Despite Last-Minute Lobbying
Bloomberg
The legislation is a scaled-down version of a more expansive bill intended to make the US more competitive with China in technology and advanced manufacturing. That legislation has been hung up in negotiations between the House and Senate over how to merge their different versions.

In addition to the chips money, a draft bill circulated by the Senate leadership includes a 25% investment tax credit for manufacture of semiconductors and tools to create semiconductors, $500 million for an international secure communications program, $200 million for worker training and $1.5 billion for public wireless supply-chain innovation, according to a copy of the text obtained by Bloomberg.


Congress bill info
 
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I haven't taken a deep enough dive into the topic but is it one of those things where the government may pour a bunch of the taxpayers money into research and development only for private companies later to profit off those innovations?
 
I haven't taken a deep enough dive into the topic but is it one of those things where the government may pour a bunch of the taxpayers money into research and development only for private companies later to profit off those innovations?

There’s pros and cons to R&D being subsidized privately or done publicly. Some industries, it isn’t simple to do it through some public means as we are talking about very specific and high end technologies. Usually with R&D subsidies, there’s rules and reporting required to prove its being used as intended and receive the funds. Trying to avoid privatizing the profits isn’t that easy. Not saying it’s impossible or couldn’t be looked into but the matter at hand is national defense overlapping with market intervention.
 
There’s pros and cons to R&D being subsidized privately or done publicly. Some industries, it isn’t simple to do it through some public means as we are talking about very specific and high end technologies. Usually with R&D subsidies, there’s rules and reporting required to prove its being used as intended and receive the funds. Trying to avoid privatizing the profits isn’t that easy. Not saying it’s impossible or couldn’t be looked into but the matter at hand is national defense overlapping with market intervention.

If R&D had been only in private hands...we didn't had such tech level in 1945 and 1950 th like we had...

Heavily funded by taxpayers R&D things enabled to make ....damn a lot of progressive things.

From computers and nuclear reactors till TV....etc stuff...
 
I haven't taken a deep enough dive into the topic but is it one of those things where the government may pour a bunch of the taxpayers money into research and development only for private companies later to profit off those innovations?
Seems like it’s tax credits and subsidies for semiconductor manufacturers.

That industry is just too expensive and difficult to get up without them, I don’t know if any modern examples of semiconductor plants and companies existing without at least some initial tax break to build.
 
Why can’t the Us focus on doing this without outside companies? Keep the money in the US and work to build our own semi-conductors.
 
Why the hell would any politician be against this bill?

If it is because other stuff is tacked on to the same bill, then have this as a standalone bill.

It is not necessary and a waste of money. US gets what it needs from Taiwan why change that special relationship?
 
Cuz it's really hard and talent is extremely limited for it.
I get that is not simple but with enough cash it can be done. Rather than giving billions to a company to open up shop here. Put a few extra billion in it and do it all in house. We throw billions out around the world already so what is a few more when it can actually benefit us.
 
I get that is not simple but with enough cash it can be done. Rather than giving billions to a company to open up shop here. Put a few extra billion in it and do it all in house. We throw billions out around the world already so what is a few more when it can actually benefit us.
As in a nationalized company essentially instead of a tax cut to a private US company like Intel?
 
IMHO factory making chips for military should be government owned.

+ sorry...in the same 1988 th US and U.K + some other countries had domestic chips in their missiles...

If to fear from " communism " is fear to have state owned chips factory, oil company etc...for national security reasons....
Then yeah...Russia and China will win.
China + Russia as China's puppet and Co as puppets - satellites.
 
It is not necessary and a waste of money. US gets what it needs from Taiwan why change that special relationship?
Setting aside the how, TSMC's stranglehold is bad for pricing and supply. More competition is good for consumers and manufacturers.
 
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