What Would The Proposed U.S. Senate Semiconductor Bill Accomplish?


A recent United States senate proposal to increase competitiveness with China within the semiconductor industry has raised interest into what the $52 billion infusion of funding could do for the U.S. as a whole.

The focus for this bill would be to modernize and upgrade existing semiconductor fabs in the U.S. as well as building new fabs in the near future. There’s recently been concern with global competitiveness coupled with a chip shortage, and this bill could help curb these concerns.

Advocates of this bill point out that the U.S. had as much as a 37% global share in semiconductor production in the 1990s, while that percentage has dropped over the last few decades to around 12% today. This bill aims to increase that percentage, and production overall over the next decade.

In addition to ramping up production and cementing the U.S. as a global force in the semiconductor industry, the bill could also help to solve the chip shortage that has been slowing automobile production. While production results likely won’t be seen in the immediate future, even if the bill passes, the goal seems to be to increase construction of new fabs as well as to ramp up overall production through updating existing fabs as well.

The bill will go to the U.S. House of Representatives once it moves through the Senate, where its fate is unknown. Many are hopeful that even if it isn’t passed as is, it could be included as part of a broader bill to increase U.S. competitiveness with China.

Manufacturing, News, Uncategorized

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