On Tuesday, a bill has been passed by the Republican and Democrat Senate to invest an amount of about $250 billion in tech companies of the US to end semiconductor chip shortage and enable themselves to compete with China.
Tech companies will use this money in the scientific research and development of technology. The Democratic senator Chuck Schumer and the Republican Senate Todd Young came up with this bill called the US Innovation and Competition Act. The bill already passed by the Senate with 68 out of 100 votes. Now it will be in front of the house.
Out of those $250 billion, $52 billion are planned to be invested in the US manufacturing of semiconductor chips. The industries in the whole world are experiencing the impact of this chip shortage, and it is an initiative that will help tech companies deal with it.
With this bill, they are trying to encourage the research sector of the US so that that tech companies can give tough competition to China in this domain.
After the passing of the bill, Chuck Schumer, the Senate Majority leader, said to The Washington Post that over the years, he has observed China use the US for their benefits, sometimes legally and sometimes illegally.
He also said that China is investing heavily in science and research, which is one way it takes advantage of them, which is scaring them to lose the spot of the biggest economy in the world.
On Tuesday, even the President of the USA, Joe Biden, in a statement while appreciating the Senate for the bill, said that they are competing to win the 21st century; they don’t want to lag behind other nations increasing their investments in the research and development.
He added that he would soon be working on this bill with the House of Representatives to sign it into law. Tech companies in America are expected to be encouraged to work in research and innovation because of this bill.
For Latest IT Industry News, Follow us on Google News and Twitter