US CHIPS Act Stalls On Claims It Unfairly Favors Intel And Others Over AMD And NVIDIA
According to Senate Majority Leader Chuck Schumer, a vote on the CHIPS Act could come as early as this Tuesday. The bill has been slimmed-down a good bit, in order to make the bill more digestible for some lawmakers. The bill is aimed at making the US more competitive against China, which has seen an increase in the chip industry over the last five years in terms of global sales.
As of right now, the bill includes $52 billion in subsidies and an investment tax credit that will bolster US manufacturing. While the bill has bipartisan support, some Republicans may vote against the measure due to unrelated spending bills attached by Democrats.
However, companies who design their own chips, but use others to manufacture them would see little to no benefit from the FABS Act as it is currently being proposed in the Senate. AMD, Qualcomm, and NVIDIA are a few of those companies who rely on partners for fabricating its chips. Those companies would be left out from getting any help through the investment tax credit.
Those companies are in favor of a version of the FABS Act that was introduced in the House of Representatives, and contains language that would also benefit companies that design its own chips, but do not manufacture them as well. The Semiconductor Industry Association, which represents US chip firms, has called on lawmakers to pass this version instead of the one in the Senate currently.
"We're encouraged that the legislation is processing, and we continue to support enactment of $52 billion in CHIPS Act investments and a FABS Act investment tax credit for both manufacturing and design," the association remarked in a statement on Friday.
Top Image Credit: Tobias Dahlberg from Pixabay