The U.S. Senate has approved $ 52 billion to fund an increase in chip production in the U.S., as part of efforts to address global chip shortages and reduce dependence on China. Apple was one of the companies that lobbied for this move.
In total, the U.S. Innovation and Competition Act provides nearly $ 250 billion to fund U.S. manufacturing, of which $ 52 billion is specifically set aside for chip production. However, it is still not clear whether this will pass in the House as well …
The Senate overwhelmingly passed a comprehensive bill to invest nearly $ 250 billion in strengthening U.S. manufacturing and technology to meet China’s economic and strategic challenge […]
“When all is said and done, the bill will be considered one of the most important things this council has done in a very long time,” Senate Majority Leader Chuck Schumer said at a Senate session ahead of the vote. “Whoever wins the race for the technologies of the future will be the world’s economic leader – with profound consequences for foreign policy and national security.” […]
Despite broad support in the Senate and the support of President Joe Biden’s administration, the fate of the law in the House is uncertain. The leaders of the House of Representatives did not publicly commit to act in accordance with the Senate bill, nor did they determine the direction of action outside the House Science Committee by considering their own plan to rebuild the National Science Foundation.
As expected, the Chinese government is not happy about this.
Chinese lawmakers have called on Congress to “immediately halt” progress on the bill, the official Xinhua news agency reported on Wednesday, citing a statement from the People’s People’s Congress Committee on Foreign Affairs.
The bill “smears China’s development path and domestic and foreign policy,” the statement said, “and interferes in China’s domestic affairs under the banner of innovation and competition.”
The act seeks to rectify the dramatic decline in government investment in technological research and development over decades, from 2.2% of GDP in 1964 to just 0.7% last year.
The global shortage of chips has led to American car factories dormant, and Apple has warned that the production of Macs and iPads is likely to be affected.
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