U.S. Senate Moves Forward With Chip Funding to Compete With China

A wafer is processed in a single wafer diffusion mechanism inside the GlobalFoundries semiconductor manufacturing facility in the U.S. on March 16, 2021. Photo: Bloomberg

(Bloomberg) — The U.S. Senate voted by a wide margin to begin debate on legislation to provide more than $52 billion in grants and incentives for the American semiconductor industry, a major milestone for the long-stalled package that proponents say is vital to national security.

The 64-34 procedural vote on Tuesday night met the criteria set by Senate Majority Leader Chuck Schumer to add research and development initiatives circulated by Republican Todd Young and Democrat Kyrsten Sinema to the legislation, which could be passed by the Senate next week.