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

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →
Ad Loading...
Photo of a loan contract on a desk
Industryby Hannah MitchellMay 13, 2026

Auto Lenders, Consumers on a Tightrope

April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.

Read More →