Washington looks to push a new bill through that will help shore up support for the semiconductor space inside of the United States.
The legislation which was drafted by senate democrat leader Chuck Schumer and other officials aims to deliver roughly $52B in subsidies in order to entice advanced semiconductor manufacturing to the United States and away from China and other potential countries of conflict.
While specifics are still being constructed, the senate can take a procedural vote on the bill as early as Tuesday which can outline where republican support stands.
WSJ reported that the Semiconductor Industry Association President and CEO John Neuffer was quoted that the group is “encouraged the legislation is progressing and look forward to swift enactment of investments that strengthen domestic chip manufacturing, design and research.”
Semiconductor exchange traded funds: VanEck Semiconductor ETF ( NASDAQ: SMH ) -32.5% , iShares Semiconductor ETF ( NASDAQ: SOXX ) -33.4% , SPDR S&P Semiconductor ETF ( NYSEARCA: XSD ) -35.9% , Invesco Dynamic Semiconductors ETF ( PSI ) -34.7% , and the triple leveraged Direxion Daily Semiconductor Bull 3 Shares ( NYSEARCA: SOXL ) -79.3% .
"If we don't pass this, we're going to wake up, other countries are going to have these [chip] investments, and we're going to say, 'why didn't we do it?'" U.S. Commerce Secretary Gina Raimondo stated.
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Semiconductor bill aims to shore up chip support inside of the U.S.