Senate passes $280 billion CHIPS Act to boost competition against China, House expected to pass

The Senate voted 64-33 on Wednesday to pass the $280 billion CHIPS Act that would encourage semiconductor chip production in the United States to stay ahead of Chinese manufacturing.

Seventeen Republicans joined Democrats in voting for the bill, which was supported by the Biden administration.

On Tuesday, Commerce Secretary Gina Raimondo said the United States is "very much behind" China in chip production and is "totally reliant" on the Asian nation for it as the Chinese Communist Party has invested more than $150 billion in the industry.

"These investments are also needed to mitigate the enormous risks to our national security and economic security that we face right now today due to vulnerabilities in key U.S. technology supply chains," National Security Advisor Jake Sullivan said at the meeting with Raimondo.

Conservatives who voted against the act argued that it would harm the economy.

"A vote for the CHIPS bill is a vote for more inflation and more deficit spending," Florida Republican Sen. Rick Scott on Wednesday told Just the News.

The measure now goes to the Democrat-controlled House, where it also is expected to pass, then be signed by President Biden.