U.S. Senate Revives Hope on CHIPS Funding
By Chris Mitchell, IPC vice president, global government relations
Key Summary
• The U.S. Senate advanced debate on a streamlined R&D bill that includes $52B in CHIPS Act funding
• Strong bipartisan support suggests the bill could pass before the August recess
• The CHIPS Act includes at least $2.5B for a National Advanced Packaging Manufacturing Program
• Funding would support R&D, facility development, and workforce training for packaging and IC substrates
• IPC emphasizes that CHIPS is a first step; long-term policy is needed to rebuild the full electronics ecosystem
Yesterday, the U.S. Senate passed a motion to proceed to debate on a slimmed down federal R&D bill that includes more than $52 billion funding to implement the CHIPS Act. The motion passed 64-34, which is a sign of strong Senate support for the bill. We could see additional changes to the bill as it is considered by the Senate.
A sense of urgency is driving action on the bill. Senate and House leaders want to send the bill to the President before the August district work period, which begins on July 27. Failure to enact the bill this month or early August would likely postpone final passage until after the November elections.
IPC strongly supports passage of the CHIPS Act funding, which includes at least $2.5 billion for a new National Advanced Packaging Manufacturing Program. Companies engaged in standing up packaging and IC substrate facilities will have opportunities to tap into funding for R&D, new facilities, and workforce training through the programs authorized by the CHIPS Act. IPC is urging federal officials to structure these initiatives to deliver benefits across the electronics manufacturing industry.
The CHIPS Act is not a panacea, however. Instead, it is a meaningful first step in helping to rebuild the U.S. electronics manufacturing industry. The Executive Branch and Congress must continue to support – through long-term policy and funding – the larger ecosystem that sustains innovative, resilient and secure electronics manufacturing.
The Senate voted 64–34 to begin debate on a scaled-down R&D bill that includes more than $52 billion to implement the CHIPS Act. This procedural move signals strong support and increases the likelihood of passage before the August recess.
Congressional leaders want the bill signed before the July recess. Delaying action could push final passage until after the November elections, slowing progress on semiconductor manufacturing and related U.S. industrial goals.
The act allocates at least $5 billion for a National Advanced Packaging Manufacturing Program. Companies standing up packaging and substrate facilities could access funding for research, new construction, modernization, and workforce development.
No. It is an important first step, but rebuilding the industry requires long-term policy support, stable funding, and broader investment in the larger electronics manufacturing ecosystem, including PCBs and assembly.
IPC is urging federal officials to design programs that benefit the full electronics supply chain. IPC will continue advocating for policies that strengthen innovation, manufacturing capacity, and workforce readiness across the industry.