 [PJMEDIA] The Senate passed a $280 billion "CHIPS and Science Act," — the culmination of several years’ efforts to create a modern industrial policy for the U.S. The bill will also give $100 billion to support regional technology hubs to support start-ups in areas of the country that haven’t traditionally drawn big funding for tech.
The bill would give $52 billion in subsidies to microchip manufacturers like Intel Corporation and will allow them to compete on a somewhat even playing field with China.
Considering the polarization in Congress, it’s remarkable that the bill received as much Republican support as it did — 17 GOP Senators voted for the bill. The bill now moves on to the House where Speaker Nancy Pelosi promises to bring it to the floor quickly. It’s expected that there will be Republican support for the bill in the House as well.
The bill, a convergence of economic and national security policy, would provide $52 billion in subsidies and additional tax credits to companies that manufacture chips in the United States. It also would add $200 billion in scientific research, especially into artificial intelligence, robotics, quantum computing and a range of other technologies.
The real impetus for passage was the pandemic when America’s chip shortage contributed to the supply chain problems suffered by many industries.
In the end, it was made possible only by an unlikely collision of factors: a pandemic that laid bare the costs of a global semiconductor shortage, heavy lobbying from the chip industry, Mr. Young’s persistence in urging his colleagues to break with party orthodoxy and support the bill, and Mr. Schumer’s ascension to the top job in the Senate.
Many senators, including Republicans, saw the legislation as a critical step to strengthen America’s semiconductor manufacturing abilities at a time when the nation has become perilously reliant on foreign countries — especially an increasingly vulnerable Taiwan — for advanced chips.
But a Wall Street Journal editorial points out the perils of allowing the government to subsidize any industry. Companies are going to have to play by different rules, including paying workers the "prevailing wage" in the region.
This is interesting.
Currently the US makes 80% of the TOTAL VALUE of the chip market. Meaning if you need server/desktop CPUs/GPUs or other high end chips, it is designed and made in the US or the design is sent to Taiwan to make. We make the good shit.
Middle ground chips like for automobiles or other value added goods are typically made in Korea, Indonesia, Japan, etc.
Cheap chips like the Internet of Things talking toaster are made in China.
It will be interesting to see what the US pushes our chip manufacturers to make here. If they want the mid-range chips brought back, we can expect they think Asia is going to hell in a handbasket. The cheap crap chips China puts out are just not profitable and will have to be outsourced to a nation like Columbia or such that has cheap, but educated labor. 
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