 "US Senate")
The US Senate has approved a bill to bolster the domestic manufacture of semiconductor chips and counter China's share in the global chip production, a USD 280 billion legislation which President Joe Biden said will create jobs and lower prices on everything from cars to dishwashers.
The bill, known as the Chips and Science Act, passed in a 64-33 vote on Wednesday.
It will now head to the House, where lawmakers hope to pass it and send it to the White House for Biden's stamp of approval.
Biden said passage of the historic bill will lower costs and create jobs.
As Americans are worried about the state of the economy and the cost of living, the CHIPS bill is one answer: it will accelerate the manufacturing of semiconductors in America, lowering prices on everything from cars to dishwashers, Biden said.
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He added that the move will also create good-paying jobs in the United States and will mean more resilient American supply chains, so we are never so reliant on foreign countries for the critical technologies that we need for American consumers and national security.
US Senator Todd Young (R-Ind.), who had first introduced the legislation in 2020 and has been working to pass it since then, said US semiconductor production, once accounting for nearly 40 per cent of the world's supply, has dropped to just 12 per cent, while China's production share is increasing.
He noted that 90 per cent of the chips used in American military technology are made overseas.
Most are made in South Korea and Taiwan, but an increasing number are produced in China. This is a very real economic and national security vulnerability, Young said.
Asserting that it is "time to go on the offensive, Young said.
China's government is planning on "winning the AI race, winning future wars, and winning the future."
And the truth is, Beijing is well on its way to accomplishing these goals. America is at risk of falling behind economically and technologically to a world power that does not value liberty or even respect human life.
For too long, when it comes to Chinese aggression, America has relied on a strategy of deterrence taking steps like blocking Huawei from doing business in the US, tightening export controls and improving foreign investment rules.
These are important measures, but no longer enough. It's time to go on the offensive, Young said.
Young pointed out that another important aspect of the USD 280 billion bill is critical applied research funding as this legislation reforms and invests in the National Science Foundation to partner with the private sector and universities to develop critical emerging technologies that will transform the global landscape.
We know that national success and competitiveness in the 21st Century economy will be built on emerging technologies like quantum computing and AI.
Funding research crucial to keeping Americans safe is one of the federal government's responsibilities, and this legislation will help us not just catch up with but overtake China in these critical areas, he said.
Young said the bill will unleash private sector innovation while significantly boosting federal national security investments.
It's been a long journey to get to this point, but history will show that by passing this bill, we are confronting the challenges of today and building a prosperous and secure tomorrow for all Americans.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
