Home Economy Chip industry predicts big boost from federal funding

Chip industry predicts big boost from federal funding

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Aiming to sway budget-conscious legislators on the value of federal funding, the chip industry’s U.S. trade group says that $50 billion in investment would boost the U.S. economy by $25 billion per year and create hundreds of thousands of jobs.

Why it matters: Congress gave conceptual blessing to the spending as part of a defense authorization bill, but has yet to allocate the funds.

On the Hill, the Endless Frontier Act is moving through Congress, with a final vote possible by the end of next week.

  • Senate Majority Leader Chuck Schumer introduced an amendment Tuesday that would include $52 billion in funding to implement legislation that would increase chip production in the automobile, military and other industries.

By the numbers: According to a study by Oxford Economics and the Semiconductor Industry Association, $50 billion in federal funding would translate to:

  • An average of 185,000 temporary American jobs over the next five years as new chip plants…

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