US Senate passes $280 billion ‘Chip and Science Act’ bill

（The picture comes from the Internet）

　　On July 28, the US House of Representatives passed the $280 billion "Chip and Science Act" with 243 votes in favor and 187 against.

　　According to foreign media reports, the 1,054-page bill mainly covers two important parts: one is to provide $52.7 billion in financial support to the semiconductor industry, encourage companies to develop and manufacture chips in the United States, and provide these companies with a 25% investment tax credits; in addition, the bill would authorize approximately $200 billion in funding for scientific and technological research over the next few years, covering artificial intelligence, robotics, quantum computing, battery technology, biotechnology, and many others that are critical to future competitiveness field.

　　It is reported that, compared with the "Chip Act" previously included in the "Innovation and Competition Act", in response to the industry's call for the "Chip Act" to be launched as soon as possible, the two houses of the United States have separated the "Chip Act" and technology-related parts. It came out and was amended accordingly to become the "CHIPS+" Act, also known as the "CHIPS and Science Act of 2022".

　　The "CHIPS+" bill is matched with an emergency supplemental appropriation of $52.7 billion that mainly finances the development of chip manufacturing and research and development in the United States, as well as a provision for tax credits for chip manufacturing investments worth about $24 billion. It will also provide hundreds of billions of dollars in funding to spur innovation and development in other U.S. technologies. The $52.7 billion in chip subsidies specifically includes:

　　1. $50 billion US chip fund

　　$50 billion in 2022-2026 to the CHIPS for America Fund, which must be used to implement the U.S. Department of Commerce’s Semiconductor Incentive Program to develop U.S. domestic chip manufacturing and research and development (“R&D”) capabilities and Workforce development program authorized by the U.S. "FY21 NDAA" Act (Sections 9902 and 9906). Each fiscal year, up to 2% of the funds are available for payroll and expenses, administration and oversight, of which $5 million per year is available for oversight.

　　Within this $50 billion chip fund, the following grants are included:

　　Incentive Program: Allocate $39 billion over 5 years to implement programs authorized by Section 9902 of the FY21 NDAA Act, with $2 billion explicitly focused on the production of chips on traditional mature processes to advance economic and national security interests. These chips are vital to the automotive industry, military and other critical industries. The remaining $37 billion is mainly used for the production of advanced process chips. In the incentive program, up to $6 billion is available for the cost of direct loans and loan guarantees.

　　① In fiscal 2022, $19 billion will be provided, including $2 billion in funding for traditional chip production.

　　②From FY2023 to FY2026, $5 billion will be provided annually.

　　Commercial R&D and Workforce Development Program: $11 billion over 5 years to implement programs authorized by Section 9906 of the "FY21 NDAA" Act, including the National Semiconductor Technology Center ("NSTC"), the National Advanced Packaging Manufacturing Program, and Section 9906 authorizations other R&D and workforce development programs.

　　① Provide $5 billion in fiscal year 2022: $2 billion for NSTC; $2.5 billion for advanced packaging; $500 million for other related R&D projects.

　　② The 2023-2026 fiscal year investment plan for NSTC, advanced packaging and other related R&D funds is as follows: $2 billion in fiscal 2023; $1.3 billion in fiscal 2024; $1.1 billion in fiscal 2025; $1.6 billion in fiscal 2026 .

　　2. $2 billion U.S. defense chip fund

　　$2 billion will be allocated for the establishment of the CHIPS for America Defense Fund, which will be allocated to the Microelectronics Commons, a national network for transitioning semiconductor technology from labs to factories that support university-based prototyping , including DoD's unique applications and semiconductor employee training.

　　3. US$500 million US International Technology Security and Innovation Chip Fund

　　Allocate $500 million to establish CHIPS for America International Technology Security and Innovation Fund: Funds will be distributed over 5 years to the U.S. Department of State, USAID, the Export-Import Bank of the United States, and the United States International Development Finance Corporation Coordinate, in order to coordinate with foreign government partners, to support international information and communications technology security and semiconductor supply chain activities, including support for the development and adoption of safe and secure telecommunications technologies, semiconductors and other emerging technologies.

　　4. $200 million to create beneficial semiconductor (chip) production incentives for the American Workforce and Education Foundation

　　Funding primarily to the National Science Foundation for a five-year period to foster growth in the semiconductor workforce. A highly skilled domestic U.S. workforce is critical to the success of new and expanded facilities created through the Chip Act incentives. The semiconductor industry is expected to require an additional 90,000 workers by 2025.

　　It is worth mentioning that there is also a $1.5 billion "public wireless supply chain innovation fund" in the bill: through the National Telecommunications and Information Administration (NTIA), in cooperation with NIST, the Department of Homeland Security and the Director of National Intelligence and other cooperation to promote the development of open-architecture, software-based wireless technologies and fund related technological innovations.

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