The U.S. Senate on Tuesday voted to move ahead with a slimmed-down version of legislation to provide billions of dollars in subsidies and tax credits for the semiconductor industry, hoping to ease a shortage that has disrupted production in industries from automobiles to electronics and high-tech weapons.
The Senate backed by 64 to 34 a procedural measure setting the stage for potential votes to pass the legislation in the Senate and House of Representatives by the end of next week.
The bill is part of a broad effort across the government to push back against a rising China and ease supply-chain problems, in this case by decreasing U.S. companies' reliance on foreign-made semiconductors.
The final text was not released before the procedural vote, but Senate aides said the measure includes about $54 billion in subsidies for U.S. semiconductor companies, as well as a new, four-year 25% tax credit to encourage companies to build plants in the United States. The tax credit is estimated to be worth about $24 billion.
Officials from President Joe Biden's administration had urged Congress to pass a semiconductor bill before leaving Washington for their annual August recess, saying it would not only create and preserve U.S. jobs, but also bolster national security.
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