US Senate passes Chips and Science Act to compete with China’s semiconductor industry

On July 27, 2022, the US Senate passed sweeping legislation to subsidise the domestic semiconductor industry. The US$52 billion funding under the Chips and Science Act would boost competition with China and alleviate a persistent microchip shortage, which has affected everything from cars, weapons, washing machines and video games. The effects of the pandemic and sporadic lockdowns in China have made it costly to manufacture and supply products to the world. After Senate approval, the bill was heading to the House of Representatives where it was expected to pass on July 29.