Senate passes CHIPS Act, sends bill to House of Representatives
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On Wednesday, the U.S. Senate voted to pass the CHIPS Act by a 64-33 vote, one day after the legislative body advanced the bill on a bipartisan basis.
The legislation, which includes $52B in subsidies for domestic production and a previously reported investment tax credit for chip plants that could be worth an estimated $24B over the next decade, will now go to the House of Representatives. If the House passes it, it will go to President Biden's desk for him to sign into law.
Speaker of the House Nancy Pelosi said on Wednesday that the House is getting ready to take up the legislation. Some have suggested the House could vote on the bill as soon as this week, as Pelosi has previously expressed support.
In addition to aid for the semiconductor industry, the bill also authorizes $200B to boost scientific research over the next 10 years.
Affected stocks: Texas Instruments (NASDAQ:TXN), Advanced Micro Devices (AMD), Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM), Qualcomm (QCOM), KLA Corp. (KLAC), Applied Materials (AMAT), Lam Research (LRCX)
President Biden previously tweeted support for the CHIPS Act, noting that it will help America compete with China.
Earlier this month, Bank of America said KLA Corp. (KLAC) was among several companies likely to benefit if the U.S. government passes stimulus for the industry.