Senate passes China competitiveness bill with $52 billion for chips – By Melissa Nann Burke (The Detroit News) / June 8 2021
Washington — The U.S. Senate adopted a major piece of legislation Tuesday that directs $52 billion in emergency spending toward domestic semiconductor chip manufacturing and boosts “Buy American” rules pushed by Michigan’s senators.
Senators gave the measure bipartisan support, voting 68-32 to pass the Democrat-led bill in the narrowly divided chamber and send it to the House for consideration.
The bill, known as the “U.S. Innovation and Competition Act,” aims to incentivize U.S. manufacturing of the chips, which are primarily produced overseas and which power electronics and key components of modern cars, trucks and SUVs, such as power steering, engine management and infotainment displays.
A chip shortage blamed on the pandemic has caused automakers to idle plants nationwide and is expected to cost the industry around $110 billion in lost revenue globally.
