agent Entrepreneur logo
MenuMENU
SearchSEARCH

Senate Passes Legislation to Boost Chip Production and Compete With China

The bill earmarks $52 billion to help domestic semiconductor manufacturers expand production.

June 9, 2021
Senate Passes Legislation to Boost Chip Production and Compete With China

Semiconductors provide power for battery management, in-car entertainment, driver assistance systems, and much more.

Credit:

Digital Lifescapes

2 min to read



 

The U.S. Senate passed a nearly $250 billion bill to solidify the U.S. position as a leader in technological research and innovation. The funds will subsidize scientific research and chip manufacturing and overhaul the National Science Foundation.

Ad Loading...

Titled the U.S. Innovation and Competition Act, the bill builds on a previous act called the Endless Frontier Act written by Senate Majority Leader Chuck Schumer, D-N.Y., and Sen. Todd Young, R-Ind.

The Senate passed the bill on a 68-32 vote, showing bipartisan support for efforts that bolster U.S. manufacturing and technology amid strategic challenges from China.

“This bill will go down as one of the most important things this chamber has done in a very long time,” Schumer said on the Senate floor before the vote. “Whoever wins the race to the technologies of the future is going to be a global economic leader—with profound consequences for foreign policy and national security as well.” 

The bill earmarks $52 billion to help domestic semiconductor manufacturers expand production. The move will speed up measures to address the global chip shortage that has idled U.S. automotive plants and disrupted electronics production. 

The automotive industry celebrated the move to include money for semiconductor manufacturing in the bill. The semiconductor shortage has slowed delivery of new vehicles in recent months.

Ad Loading...

“Semiconductors form the nerve center of America’s economy, national security and critical infrastructure,” said John Neuffer, president and CEO of the Semiconductor Industry Association. “We look forward to working with leaders in the Administration and Congress to enact needed federal investments in chip technology to help ensure more of the chips our country needs are researched, designed, and manufactured on U.S. shores.” 

The legislation also authorizes $190 billion to increase R&D efforts at universities and other institutions. 

The bill still must pass the House, where leaders haven’t publicly noted whether they will support it or establish their own course of action targeted at revamping the National Science Foundation. 

Schumer said the Senate bill is close to what the House is working on and expressed positivity about it passing there. “It’s in President Biden’s agenda and I’m quite certain we will get a really good product on the President’s desk,” he said.

Chinese lawmakers were not as certain, urging Congress to “immediately stop” progress on the bill, reported the official Xinhua News Agency. The statement said the bill “smear’s China’s development path and domestic and foreign policies” and “interferes in China’s internal affairs under the banner of innovation and competition.” 

 

Originally posted on Auto Dealer Today

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...