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The Wall Street Journal: Biden seeks $50 billion to aid U.S. chip makers

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WASHINGTON — President Joe Biden’s expansive infrastructure proposal includes $50 billion for the American semiconductor industry, whose lobbying efforts have gained momentum amid a global chip shortage and fears that China might be overtaking the U.S. in a critical technology.

Biden’s plan, released Wednesday, seeks to leverage bipartisan support on Capitol Hill to subsidize domestic manufacturing and chip research. The $50 billion will go toward production incentives and research and design, including the creation of a National Semiconductor Technology Center, administration officials said.

The president detailed the overall $2 trillion infrastructure plan during a late-afternoon speech in Pittsburgh. It would be paid for by raising the corporate tax rate to 28% from 21% and increasing taxes on companies’ foreign earnings.

Biden has broad bipartisan support for aiding the semiconductor industry, including from Republican lawmakers who say China is spending heavily to build its own chip-making capacity, threatening the U.S. lead in advanced chip technology.

An expanded version of this report appears on WSJ.com.

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