The U.S. House of Representatives on Friday passed a multibillion-dollar bill with a slight margin aimed at increasing the competitiveness of the United States in relation to China and stimulating the production of semiconductor products in the United States.
Among other measures, the 2,900-page "America's Competition Act of 2022" provides for the allocation of almost $300 billion for research and development, including $52 billion in grants to subsidize the production of semiconductor products. Also, over the course of six years, $45 billion will be allocated to solve supply chain problems that have exacerbated the current shortage of chips.
The passage of the bill by the House of Representatives marked the beginning of negotiations with the Senate on a compromise version of the law, which must pass both chambers before it can be sent to the White House for President Joe Biden to sign.
If the law is passed, it will be the most comprehensive attempt by the United States to counter China's technological and industrial dominance. However, observers believe that it is unlikely to be signed in the current iteration - largely due to ideological differences between Democrats and Republicans on how exactly the federal government should position the country to compete with China. However, the parties agree on the main thing — the government should spend more money to support local chip production.
