The US House passed the bipartisan legislation that would provide subsidies for the production of semiconductor chips, on Thursday.
The bill will pave the way for providing nearly $280 billion in various incentives for US-based chip making and boost competitiveness with China by allocating billions of dollars toward domestic semiconductor manufacturing and science research.
The bill, popularly known as the CHIPS-Plus package, has three major incentives for chipmakers. It will provide $52 billion of assistance in setting up fabs and manufacturing units, which also includes $2 billion for legacy chipmaking essential to the auto and defense industry.
The bill also provide 25% in tax relief for investment in local semiconductor manufacturing at roughly $24 billion, and $200 billion grant for research in the area.
Source - US Congress
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