US lawmakers propose US$22.8 billion in aid to semiconductor industry amid rivalry with China
- The proposal includes a refundable income tax credit for semiconductor equipment, funds to match state incentives to build factories, and R&D funding
- While some firms such as Intel and Micron Technology still make chips in the US, the industry’s centre of gravity has shifted to Asia
A bipartisan group of US lawmakers on Wednesday introduced a bill that would provide more than US$22.8 billion in aid for semiconductor manufacturers, aiming to spur the construction of chip factories in America amid a simmering strategic technology rivalry with China.
Chip factories can cost up to US$15 billion to build, with much of the expense in the form of pricey tools. The proposal would create a 40 per cent refundable income tax credit for semiconductor equipment, US$10 billion in federal funds to match state incentives to build factories, and US$12 billion in research and development funding.
Senators John Cornyn, a Texas Republican, and Mark Warner, a Virginia Democrat, introduced the bill in the Senate. Aides to Representatives Michael McCaul, a Texas Republican, and Doris Matsui, a California Democrat, said the two planned to introduce a version in the US House of Representatives on Thursday.