According to the Wall Street Journal, the chip bill has been proposed for more than a year, but the progress is not too smooth, hitting the chip makers to expand production incentives.

As the industry knows, one of the purposes of the U.S. chip bill was to alleviate the severe shortage of automotive chips at that time. However, the shortage of automotive chips remains, and NXP a factory expansion plan worth about $2.6 billion is also waiting for the incentive funds to arrive before starting and will choose Texas or Austin plant for expansion.

NXP aims to finalize the project in the fourth quarter of this year and break ground in 2024. If the chip incentive funds are not in place by then, the company may expand its Singapore facility, partner with other chipmakers in Europe, or outsource production to contract chipmakers in Asia.

Chip industry executives lobbying Congress to resolve differences and enact legislation said that without U.S. subsidy funding, expansion could be moved overseas because growth in the United States would be limited. The industry once hoped to get the support of President Biden and some key members of Congress, prompting the bill to fund incentives passed last year, but due to ongoing partisan disputes, preventing the legislation from pushing closer, and whether the legislation can be passed in the next few months to land is still an unknown.

Republicans believe Democrats have added too many spending measures to the bill that have nothing to do with chip manufacturing itself, and Robert Reich, secretary of labor under President Clinton, declared in June that the semiconductor strategy is "pure extortion" of a highly profitable industry. ".