US Congress approves Chips Act to boost semiconductor production
Tags: National News
The US House of Representatives has passed the Semiconductors and Science Bill to provide $280 billion in aid and subsidies to its semiconductor industry facing competition from China.
The bill would provide "$52 billion of subsidies and additional tax credits" to companies making chips in the US.
An amount of $ 200 billion has also been allocated for scientific research of artificial intelligence and other innovative technologies.
Last year, a global shortage of semiconductors or chips led to the recognition that the US needed substantial manufacturing of its own.
Since 2020, the increasing use of devices such as laptops in homes has further fueled its demand.
According to a Forbes report, about 75% of the world's dependence on semiconductors is met by East Asia.
The bill states that currently only 12% of chips are manufactured domestically, compared to 37% in 1990, and several countries, including China, are investing heavily to dominate the industry.
The bill would reduce America's reliance on foreign sources of semiconductors and strengthen national security.
What are Semiconductor Chips?
It is a material which has conductivity between conductor and insulator.
Compounds of silicon or germanium or gallium, arsenide or cadmium selenide are used in this.
Why are semiconductors or chips so important?
It serves as the centre and brain of all modern electronics and information and communication technology products.
The chips are used as data-storing memory chips, or logic chips that run programs.
Manufacturing of chips requires a lot of precision as well as investment.
This requires special conditions where even small disturbances around or inside the manufacturing unit can hamper production.
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