US Senate approves $52 billion for chip makers—but not designers

The US Senate has approved the CHIPS Act, by a vote of 64-33, a bill that would provide $52 billion in aid funds to semiconductor manufacturers looking to make products in the US, along with a 25% tax credit for investment in the industry, as well like research and workforce development grants.

The bill still needs approval from the US House of Representatives and President Biden, a vocal supporter of the legislation, to become law.

While $2 billion of the direct aid funds are already earmarked for legacy programs—specifically, technologies that the Department of Defense wants to produce within the U.S.—the remaining $50 billion is generally available for domestic silicon manufacturing. further develop in the country.

The big winners, if the CHIPS Act is signed into law, will be companies like Intel, which already have chip manufacturing facilities in the US or are planning to build them – but other chip companies, especially those with a key role them in a chip. design but don’t make products themselves, caution that the bill doesn’t go far enough to help the US silicon industry.

Lawmakers also encouraged chip designers to help

Vinay Ravuri, CEO of wireless chip design company EdgeQ, said in a statement that the U.S. risks losing its leading edge in innovation if funding is not made available to other less-good silicon designers and firms.

“The CHIPS [Act] it addresses a scaling issue. But it doesn’t address intelligence,” he said. “To be relevant, we need to invest in cutting-edge companies, especially those that want to disrupt the industry and lift it into new territories, such as 5G and AI.”

Copyright © 2022 IDG Communications, Inc.

US Senate approves $52 billion for chip makers—but not designers

Source link US Senate approves $52 billion for chip makers—but not designers

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