House approves $52 billion for chips, teeing up for Biden to sign into law

Washington — The U.S. House approved $52 billion in subsidies and $24 billion in tax credits for the computer chip industry Thursday, despite fierce opposition from Republican leadership incensed by a last-minute Democratic maneuver Wednesday night.

The bill, which passed 243-187, will now head to President Joe Biden, who has said he plans to sign it. Among the yes votes were 24 Republicans, among them Michigan Reps. Peter Meijer and Fred Upton.

It marks a major win for the automotive industry, which has struggled for the last two years under a global shortage of chips, and for national security advocates who say the U.S. is falling behind its chief economic rival, China.

In addition to the chip funding, the legislation authorizes $100 billion over five years for research programs through the National Science Foundation.

Modern cars rely on chips to roll down windows, power infotainment systems and support steering. Electric vehicles require even more chips. Automakers had to cancel shifts and store vehicles until enough chips were available to sell them, contributing to the skyrocketing prices of new and used vehicles. 

Michigan Sens. Debbie Stabenow, D-Lansing, and Gary Peters, D-Bloomfield Township, pushed for a provision in the legislation that sets aside $2 billion for “legacy” chips used in autos. 

“The reality is we need to make more chips and we need to make them in America,” Rep. Debbie Dingell, D-Ann Arbor, said on the House floor Thursday. “We’re at an inflection point where we can and must cement U.S. leadership and keep America at the forefront of innovation and technology.”

The bill was on track to receive bipartisan support from both chambers as many Republicans and Democrats agreed the funding was necessary to increase U.S. competitiveness and secure crucial supply chains.