US Semiconductor Support Bill Finally Clears Senate... House Expected to Pass It This Week

President Joe Biden [Photo by AP]

[Asia Economy Reporter Jeong Hyunjin] The U.S. Senate has passed a bill providing $52 billion (approximately 68.3 trillion KRW) in subsidies to foster the domestic semiconductor industry, aiming to gain an advantage in the global semiconductor dominance competition and to check China. The bill has been sent to the House of Representatives, where the Democratic Party holds the majority, and it is expected to be passed within this week.

According to Bloomberg and other sources on the 27th (local time), the Senate held a vote on the "CHIPS and Science Act" during the plenary session and passed it with 64 votes in favor and 33 against. To pass the bill, 60 votes in favor were required. With the Democrats holding 50 seats including independents, some Republican senators voted in favor, resulting in the bill's passage. Senator Bernie Sanders, an independent with Democratic leanings, voted against the bill.

The bill centers on investing $52 billion in the semiconductor industry by applying tax credits for building semiconductor manufacturing facilities to promote the development and technological superiority of the U.S. semiconductor industry. The Congressional Budget Office analyzed that if this bill is implemented, it will increase the fiscal deficit by $79 billion over ten years.

The Biden administration has been focusing on passing this bill as a measure to counter China. Both the U.S. Senate and House of Representatives view semiconductors as essential infrastructure for securing future growth and national security, and have each passed bills to promote the U.S. semiconductor industry. However, disagreements over specific details between the Senate and House delayed the bill's passage.

Before the vote, Senate Majority Leader Chuck Schumer described the bill as "a turning point for American leadership in the 21st century," adding, "Through the approval of the largest investment related to science, technology, and manufacturing, we will say that America's prime time has not yet come." Senate Minority Leader Mitch McConnell said the bill concerns "national security" and expressed hope that it would not be costly.

U.S. foreign media expect the bill to pass the House this week. With the House preparing for a summer recess next week and the Democrats holding the majority, it is anticipated that there will be no difficulty in passing the bill during the week. Senator Todd Young responded "Yes" when asked by the media if President Biden could sign the bill as early as this weekend.

President Biden, who has been urging the bill's passage, issued a statement welcoming it, saying, "This means the U.S. will have better resilience in supply chains," and "We will never be dependent on other countries for critical technologies necessary for American consumers and national security."

If this law is implemented, companies such as Samsung Electronics, which has pledged semiconductor investments in the U.S., as well as Intel and TSMC, are expected to benefit. Intel CEO Pat Gelsinger has repeatedly emphasized the importance of passing this bill to Congress and recently even postponed the groundbreaking ceremony for the Ohio plant to urge the bill's passage before the summer recess.

This content was produced with the assistance of AI translation services.