The PCB Bill refers to proposed legislation in the U.S. aimed at boosting domestic production of semiconductors and strengthening America's technology supply chains. It stands for "Creating Helpful Incentives to Produce Semiconductors" for America Act. Let's look at the key contents of this important bill.
Background and Need <h2>
The Covid-19 pandemic exposed vulnerabilities in global tech supply chains. Shortages of chips severely impacted automotive sector. U.S. share of global semiconductor manufacturing declined from 37% in 1990 to just 12% today. This highlights the strategic importance of semiconductors and the urgent need to rebuild domestic production capabilities.
Key Sections and Provisions <h2>
The PCB bill provides incentives and investments worth over $52 billion to stimulate semiconductor research, development and manufacturing in the United States. Some of the major sections are:
Semiconductor Incentives <h3>
Provides $39 billion in incentives for semiconductor manufacturing, R&D and workforce development. This includes:
- $3 billion for R&D initiatives at Department of Defense
- $11 billion for Department of Commerce to incentivize construction of new semiconductor fabrication plants in U.S.
- $15 billion for establishing incentives program at the Department of Commerce to support production of mature semiconductors used in automobiles and other sectors.
- $2 billion to incentivize production of legacy semiconductors used in defense and electronics.
CHIPS for America Fund <h3>
Allocates $13.2 billion to establish a fund at the Department of Commerce to strengthen semiconductor industry through investments in R&D and workforce development.
Manufacturing USA Semiconductor Initiatives <h3>
Provides $200 million to Manufacturing USA program for developing next generation semiconductor technologies.
Microelectronics Supply Chain Resilience <h3>
Provides $500 million to enhance availability, transparency and resilience in microelectronics supply chains.
Advanced Packaging Grants <h3>
Allocates $50 million for semiconductor advanced test, assembly, and packaging capabilities.
Metrology R&D <h3>
Provides $100 million for metrology R&D to support semiconductor manufacturing.
Manufacturing Talent <h3>
Invests $3 billion in NSF programs related to semiconductor industry workforce needs.
Committee Passage Details <h2>
The U.S. Senate passed the bill in June 2021 with strong bipartisan support by a vote of 64-32. It was formally introduced in the House on Feb 3, 2022 and referred to the Science, Space, and Technology Committee. The committee approved and ordered the bill to be reported on Feb 9, 2022.
Here are some key details from the committee passage:
| Passage Details | |
|---|---|
| Bill Number | H.R.4521 |
| Bill Title | America COMPETES Act of 2022 |
| Committee | House Science, Space, and Technology |
| Date of Passage | February 9, 2022 |
| Vote | 27-22 |
| Significant Amendments | Added provisions on STEM education, R&D funding authorizations, critical minerals |
The America COMPETES Act combines the House version of the PCB provisions with the previously passed U.S. Innovation and Competition Act. It aims to strengthen domestic manufacturing, supply chains, R&D and technology development.
Outlook and Next Steps <h2>
The Bill now heads to the House floor for broader consideration. Given the bipartisan support, it is expected to pass the House vote. There will be differences compared to the Senate-passed USICA that need reconciliation through Congressional negotiations.
Semiconductor industry groups have expressed support for the bill and urged swift passage in Congress. The legislation is considered crucial for enhancing domestic chip production capabilities and securing America's strategic technology leadership.
FQA <h2>
What are the key reasons that led to the PCB bill? <h3>
The bill aims to address semiconductor shortages and boost domestic manufacturing after the pandemic exposed supply chain vulnerabilities. Declining U.S. chip production capability is another key factor that led to the strategic importance of this legislation.
What are some of the main incentives provided by the bill? <h3>
It provides over $39 billion in incentives for new semiconductor manufacturing facilities and R&D. This includes $11 billion in incentives from Commerce Dept. for fab construction, and $15 billion for mature chip production.
What is the CHIPS for America Fund in the legislation? <h3>
It establishes a new $13.2 billion fund at the Commerce Dept. focused on investments to strengthen the semiconductor industry through R&D, workforce development and other programs.
How much funding is allocated for semiconductor R&D initiatives? <h3>
The bill provides $3 billion for R&D at the Department of Defense, and billions more through the CHIPS fund, Manufacturing USA initiatives and NSF. Overall it includes sizable funding for advancing semiconductor research and technologies.
What are the next steps for passage of the bill into law? <h3>
Following committee passage in the House, it heads for a full House vote. The Senate has already passed its version of the bill, so ultimately differences will need to be reconciled. But strong bipartisan support means it is likely to be passed into law.
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