The House of Representatives on Thursday passed by a vote of 243 to 187 bipartisan legislation aimed at boosting domestic semiconductor manufacturing and scientific research.

All Democrats and 24 Republicans voted for the bill, which passed the Senate on Wednesday.

According to Washington Post, the $280 billion CHIPS and Science Act — short for Creating Helpful Incentives to Produce Semiconductors for America Act — will subsidize domestic semiconductor manufacturing and invest billions in science and technology innovation, with the goal of bolstering the country’s competitiveness and autonomy. Proponents of the bill argue that the legislation is long overdue and will help reduce the United States’ reliance on China and other countries for chip manufacturing, which they say poses a growing risk to national security.

“The American people may not know this, but semiconductors are an integral part of their daily experiences,” Rep. Frank Pallone (D-NJ) said in a statement ahead of the vote. “These are microchips that are used in automobiles, consumer electronics, and washing machines.”

More than $50 billion will be allocated to semiconductor manufacturing and research, tens of billions of dollars to strengthening regional technology hubs, and billions of dollars to the National Science Foundation, the Department of Commerce, and the National Institute of Standards and Technology. There will also be a tax credit that will cover 25% of investments in semiconductor manufacturing until 2026.

In a statement from the White House, President Joe Biden said the bill is “exactly what we need to do to grow our economy right now.”

“Today the House passed a bill that will make cars cheaper, appliances cheaper and computers cheaper. It will reduce the costs of everyday goods. And it will create well-paying manufacturing jobs in across the country and at the same time strengthen American leadership in the industries of the future,” the president said.

“By making more semiconductors in the United States, this bill will increase domestic manufacturing and reduce costs for families. And it will strengthen our national security by making us less dependent on foreign sources of semiconductors. This bill includes important safeguards to ensure that companies that receive taxpayers’ money invest in America and that unionized workers build new manufacturing plants across the country. I look forward to signing this bill,” he continued.

Meanwhile, Senate Majority Leader Chuck Schumer (D-NY) noted that the bill’s passage is a “major step” for the economic and national security of the United States, the chains of procurement and for “America’s Future”. He added that “we will reawaken the spirit of discovery, innovation, invention and optimism that has made America the envy of the world.”

House Speaker Nancy Pelosi (D-CA) called the legislation “a major win for American families and the American economy.”

Ethen Kim Lieser is a Washington State-based finance and technology editor who has held positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow him or contact him on LinkedIn.

Picture: Reuters.