Congress advances new subsidies for domestic chip manufacturing

US Capitol 5 (Verge Stock)
US Capitol 5 (Verge Stock)

In a Friday session, the US House of Representatives passed the America COMPETES Act on a 222-210 vote. Colloquially described as a “China competition” bill, the COMPETES Act would provide new subsidies to the US semiconductor manufacturing industry, along with other measures aimed at stimulating the economy.

Votes fell roughly along party lines, with only a single House Democrat opposing the measure and only a single Republican voting in support.

The COMPETES Act provides $52 billion of federal money to boost US semiconductor manufacturing, with $39 billion going to direct subsidies for new fabrication facilities. Many facilities eligible for this funding are already under...

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