The House of Representatives has passed legislation to reinvigorate chip production in the United States.

Amid the worldwide chip crisis, the US House of Representatives has passed a measure to increase chip manufacture in the US and alleviate supply chain issues. However, to bring legislation to the White House, Congress must reconcile it with a similar package enacted by the Senate last year.

On Friday, the COMPETES Act cleared the House on a 222-210 party-line vote, with one Republican voting in favor and one Democrat voting against it. The COMPETES Act, sometimes known as the “China competition” law, provides economic stimulus by allocating $52 billion to subsidize semiconductor production in the United States, allowing the country to wean itself off its reliance on Chinese chip creation.

The measure allocates $39 billion in subsidies to new semiconductor production facilities, including some already under construction, such as the factory in Arizona that Apple and Qualcomm chip maker TSMC are constructing. While many of these plants would take years to get up and running, increased local production might help alleviate the worldwide chip shortage that has impacted various businesses.

The White House applauded the House bill’s passage, which must now be reconciled with the US Innovation and Competition Act, enacted by the Senate in 2021.

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