The Senate passed a bill on Wednesday that would provide $280 billion in funding to attract more chip manufacturers to the U.S.
The bill includes incentives and grants for producers of microchips.
The bill passed by a 64-33 margin, with Sen. Bernie Sanders joining 32 Republicans in opposition to the bill. The bill has the support of President Joe Biden, who said he would sign it once it is agreed upon in the House.
“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. “It also will create jobs – good-paying jobs right here in the United States. It 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.”
The bill’s passage has come after weeks of discussions between senators.
"There is no doubt that there is a global shortage of microchips and semiconductors, which is making it harder for manufacturers to produce the cars, cell phones, household appliances and electronic equipment that we need, and that is why I fully support efforts to expand U.S. microchip production," Sanders said. "But the question we should be asking is this -- should American taxpayers provide the microchip industry with a blank check?"
The Congressional Budget Office projected the bill would add $80 billion to the federal deficit.