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WASHINGTON – President Biden’s expansive infrastructure proposal includes $ 50 billion for the U.S. semiconductor industry, whose lobbying efforts have gained momentum amid a global chip shortage and fears that the China does not overtake the United States in a critical technology.
Mr Biden’s plan, released Wednesday, is to leverage bipartisan support on Capitol Hill to subsidize domestic manufacturing and chip research. The $ 50 billion will go towards production, research and design incentives, including the establishment of a national semiconductor technology center, administration officials said.
The president detailed the comprehensive $ 2 trillion infrastructure plan during a late afternoon speech in Pittsburgh. It would be funded by increasing the corporate tax rate from 21% to 28% and increasing taxes on foreign corporate profits.
Mr Biden enjoys broad bipartisan support for helping the semiconductor industry, including from Republican lawmakers who say China is spending heavily to build its own chip-making capacity, threatening US leadership in advanced chip technology.
Some conservatives, however, say the industry should not be subsidized by the federal government.
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