The U.S. Senate has approved a reduced version of a bill that aims to increase semiconductor competition with China and reduce dependency on Asian manufacturers.

The bill provides about $50 billion in subsidies to boost U.S chip-making for new vehicles. The bill is a bipartisan effort and overcame a crucial procedural obstacle with a 64-34 vote late Tuesday. The bill needs one final vote from the House of Representatives before it can reach President Joe Biden. An increase in domestically produced chips would increase car inventory, stabilizing the industry in North America.

The production of new vehicles has slowed down in 2022 as a significant shortage of chips has been noted. Many chip production facilities are overseas and waiting to deliver raw materials. The Biden administration believes that a larger domestic chip industry will decrease the need for foreign markets. 

Just one year ago, the Senate approved a similar $250 billion bill that would support U.S. chip-making and invigorate American research and development, but it did not make it past the House. Instead, House Democrats created a bill that focused on competition with China and a great emphasis on climate change which Republicans opposed.


Did you enjoy this article? Read other articles on CBT News here. Please share your thoughts, comments, or questions regarding this topic by submitting a letter to the editor here, or connect with us at

Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.

While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.