Semiconductor Support Bill Passed by US Congress, Awaiting President's Signature... "Biden's Victory"

President Joe Biden of the United States

[Asia Economy Reporter Jeong Hyunjin] The semiconductor support bill, prepared by the United States to gain the upper hand in the global semiconductor hegemony war and to check China, has passed the congressional hurdle. The bill, which had been in Congress for over a year, was passed, and foreign media have evaluated it as a "victory for President Joe Biden," who strongly pressured the enactment of the law.

According to Bloomberg and others on the 28th (local time), the U.S. House of Representatives held a vote on the "CHIPS and Science Act" and passed it with 243 votes in favor and 187 against. With the bill having passed the Senate the previous day and being processed in the House on the same day, the law to foster the U.S. semiconductor industry now only awaits President Biden's signature.

The bill centers on investing a total of $280 billion (approximately 365 trillion KRW) to develop the U.S. semiconductor industry and maintain technological superiority. In particular, the core is to invest $52 billion in the semiconductor industry through methods such as applying tax credits for building semiconductor production facilities. The Congressional Budget Office analyzed that if this bill is implemented, it will contribute to increasing the fiscal deficit by $79 billion over ten years.

Nancy Pelosi, Speaker of the U.S. House of Representatives, said in a statement before the vote, "This bill is a significant victory for American families and the American economy," adding, "Once enacted, this bill will strongly boost semiconductor production in our country, revitalize American manufacturing, and create nearly 100,000 quality jobs."

The Biden administration has put effort into passing this bill as a measure to check China. Initially, both the U.S. Senate and House regarded semiconductors as essential infrastructure necessary for securing future growth engines and national security, and each processed bills to promote the U.S. semiconductor industry. However, disagreements over specific details between the bills passed by the Senate and House delayed the legislation. Ahead of the November midterm elections, Democratic leadership agreed to separate the semiconductor portion for priority processing, and just before the summer recess, the bill's passage rapidly accelerated.

Kevin McCarthy, House Republican Leader, initially did not express a clear stance on the bill, but after news spread the previous evening that the Democrats were pushing a tax-related bill opposed by Republicans in the Senate, he officially opposed it, calling it a "bill that only benefits a single industry." However, in the House vote, 24 Republican members voted in favor. The Washington Post (WP) reported that these were mainly representatives from Ohio and Indiana, where Intel semiconductor plants are planned to be established.

President Biden emphasized immediately after the bill's passage, "(This bill's passage) is what we need to do to grow our economy now," adding, "It will lower the prices of everyday goods, create high-paying manufacturing jobs across the U.S., and strengthen America's leadership in future industries."

Once the bill is enacted, U.S. semiconductor companies such as Intel, Taiwan's TSMC, and Samsung Electronics, which plans to expand its factory in Texas, are expected to be the biggest beneficiaries.

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