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Senate Passes Bill Investing $52 Billion In US Semiconductor Production

(CBS DETROIT/CNN) -- The Senate voted Wednesday to pass a long-awaited bill aimed at boosting U.S. semiconductor production in a bid to increase American competitiveness.

It passed with broad bipartisan support, 64 to 33.

The measure now goes to the House for approval before it can be sent to President Joe Biden for his expected signature.

The legislation is aimed at addressing a semiconductor chip shortage and making the U.S. less reliant on other countries such as China for manufacturing. Supporters say the measure is important not only for U.S. technological innovation but for national security as well.

It sets up incentives for domestic semiconductor manufacturing as well as research and development and includes more than $50 billion in funding for that aim. It includes a number of provisions aimed at bolstering scientific research, including authorizing billions of dollars for the National Science Foundation, the Department of Commerce and the National Institute of Standards and Technology.

Michigan Gov. Gretchen Whitmer says the passage of the legislation, which included the Creating Helpful Incentives for the Production of Semiconductors for America (CHIPS) Act, is a "win" for Michigan workers, manufacturers and consumers.

In March, Whitmer traveled to the White House to seek support for the legislation.

"This game-changing bill will make once-in-a-generation investments to set up the United States for decades of economic growth by bringing this vital supply chain home, creating and protecting tens of thousands of good-paying jobs, and lowering costs for families.

"I am grateful to Senator Stabenow and Senator Peters for leading on this issue in the Senate and working across the aisle to get it done. When it is signed into law, the CHIPS+ Act will shore up our supply chain and support companies based in Michigan including our auto industry, homegrown chip manufacturer Hemlock Semiconductor, and other high-tech firms including SK Siltron and KLA.  

"In the days ahead, I am confident that thanks to the strong support of our Michigan delegation, the House of Representatives will pass this bill, and I urge them to send it to the president's desk as quickly as possible so we can get the incentives laid out in the legislation out the door, build on Michigan's economic momentum, and ultimately lower costs for Michiganders. I am proud that we are showing the world that the United States is the place to build the future. Let's keep moving Michigan forward."

Senate Majority Leader Chuck Schumer has praised the bill as a major bipartisan achievement and touted it as highly consequential.

"It's a major step for our economic security, our national security, our supply chains and for America's future," Schumer said of the legislation in remarks on the Senate floor this week.

Schumer described the bill as "one of the most consequential bipartisan achievements of this Congress."

"It will make historic investments to scientific research. It will take direct aim at our nation's chip crisis," he said.

GOP Sen. Todd Young of Indiana, who worked closely with Schumer and other senators over a long process of negotiations praised the bill for "unleashing the potential of our people in outcompeting and out innovating our global rivals who don't share our values or economic interests."

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