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Senate Approves Bill Worth $52 Billion For US Microchip Manufacturing Boost

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The US Senate once again approved a bill on Monday to grant US subsidies for semiconductor microchip manufacturing boost. This will cost the government $52 billion to take action.

After months of discussion, the said bill aims to solve the microchip shortage to reach a compromise. A 62-28 procedural vote result sends the legislation back to the House of Representatives to launch a “conference” officially. Lawmakers from both chambers will convene to achieve a compromise version of an agreement for the microchip manufacturing boost.

It has been reported virtually weekly that the global microchip shortage crisis has negatively impacted the automotive and electronic industries. The shortage, which is an effect of the COVID-19 pandemic, gave some manufacturers no choice but to either scale down production or temporarily close factories. Since most US automakers heavily rely on microchips produced from other countries, the effect of the shortage has been daunting. As a result, new and used car prices went up while inventories went low.

According to the Senate Commerce Committee chair Maria Cantwell in a report by WTVB, the senate vote is a crucial step for the country to “get us to real negotiations.” For White House spokeswoman Jen Psaki, this is another step “to strengthen our supply chains, make more in America, and outcompete China and the rest of the world for decades to come. We look forward to the House of Representatives moving quickly to start the formal conference process.”

A House Democratic aide shared in a report that the chamber will study the bill and bring it back to the Senate within the later part of this week. Then, the Senate will have to move to vote once more to launch the conference. Considering the time they’re taking, the lawmakers will not reach a final decision until summer.

Although most of the Senate already approved of the initial bill, Senator Bernie Sanders found it “corporate greed”.

Read More:
When Will The Microchip Shortage End? How To Buy Cars During This Time?
Will Used Car Prices Go Up In The Future? Yes, If The Semiconductor Shortage in 2021 Crisis Continues
Ford Partners With Globalfoundries to Combat US Chip Shortage

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