The CHIPS Act up for Unexpected Vote to Approve $62 Billion Semiconductor Industry Subsidy
e U.S. Senate has fast-tracked a vote to bring to the Senate floor deliberation and final approval of the $62B in subsidies for the already Senate-approved bill known as the CHIPS Act. The separate vote today on the CHIPS act appropriations will also include a vote on the Fabs Act:
“A draft [of the CHIPS Act] being circulated in Congress on Monday also included elements of a separate bill, known as the Fabs Act, which offers tax credits to build chipmaking plants, and $1.5bn for funding 5G networks,” (1) including “a 25% tax credit for the construction of fabs and the manufacturing equipment necessary to operate the facilities.” (2)
The CHIPS Act and FABS ACT legislation has now been fast-tracked and taken out of the United States Innovation and Competition Act of 2021, which is now stalled in the Senate. This omnibus bill “addresses U.S. technology and communications, foreign relations and national security, domestic manufacturing, education, trade, and other matters.” (3) The CHIPS Act provision in the bill would have provided “funding for FY2022-FY2026 to support U.S. semiconductor manufacturing, research and development, and supply chain security” and was part of these broader provisions of the United States Innovation and Competition Act of 2021:
- provides funding for wireless supply chain innovation;
- establishes a Directorate for Technology and Innovation in the National Science Foundation;
- extends through 2025 the authority of the National Aeronautics and Space Administration (NASA) to lease its non-excess real property and related personal property;
- authorizes various programs and policies related to space exploration;
- authorizes various international affairs programs and activities, including foreign assistance for the Indo-Pacific region;
- requires federal infrastructure programs to provide for the use of materials produced in the United States;
- imposes sanctions on China for cybersecurity and human rights abuses;
- requires the Department of Health and Human Services to consider national security risks associated with sensitive genetic information;
- includes initiatives related to elementary and secondary education, including those to increase computer science education;
- contains provisions related to higher education, including those reauthorizing through FY2027 international education programs and addressing China’s influence on institutions of higher education;
- modifies and expands the schedule for graduated merger filing fees;
- prohibits federal funding for the Wuhan Institute of Virology;
- requires the U.S. Trade Representative to take certain actions related to digital trade and censorship practices; and
- extends through 2027 the Generalized System of Preferences. (3)
The vote today takes place with the backdrop of Taiwan’s GlobalWafers’ recently announced plan to build $5 Billion Plant in Sherman, Texas and our ongoing OODA Loop research and analysis based on the insights garnered from our November 2021 Stratigame on the Global Computer Chip Supply Chain Disruption.
To continue reading please consider joining as either a subscriber or full member to support our continued research and analysis. For more on benefits of membership see below.
Want more insight? Log in for the full report
Already a member? Sign in to your account.
OODA Loop provides actionable intelligence, analysis, and insight on global security, technology, and business issues. Our members are global leaders, technologists, and intelligence and security professionals looking to inform their decision making process to understand and navigate global risks and opportunities.
Members get all site content plus additional Member benefits such as participation in our Monthly meetings, exclusive OODA Unlocked Discounts, discounted training and conference attendance, job opportunities, our Weekly Research Report, and other great benefits. Join Here.
Explore OODA Research and Analysis
Use OODA Loop to improve your decision making in any competitive endeavor. Explore OODA Loop
The greatest determinant of your success will be the quality of your decisions. We examine frameworks for understanding and reducing risk while enabling opportunities. Topics include Black Swans, Gray Rhinos, Foresight, Strategy, Stratigames, Business Intelligence and Intelligent Enterprises. Leadership in the modern age is also a key topic in this domain. Explore Decision Intelligence
We track the rapidly changing world of technology with a focus on what leaders need to know to improve decision-making. The future of tech is being created now and we provide insights that enable optimized action based on the future of tech. We provide deep insights into Artificial Intelligence, Machine Learning, Cloud Computing, Quantum Computing, Security Technology, Space Technology. Explore Disruptive/Exponential Tech
Security and Resiliency
Security and resiliency topics include geopolitical and cyber risk, cyber conflict, cyber diplomacy, cybersecurity, nation state conflict, non-nation state conflict, global health, international crime, supply chain and terrorism. Explore Security and Resiliency
The OODA community includes a broad group of decision-makers, analysts, entrepreneurs, government leaders and tech creators. Interact with and learn from your peers via online monthly meetings, OODA Salons, the OODAcast, in-person conferences and an online forum. For the most sensitive discussions interact with executive leaders via a closed Wickr channel. The community also has access to a member only video library. Explore The OODA Community