In a bid to shore up local chip production in the midst of a global shortage, semiconductor companies are being offer a 25 per cent tax credit, under a bipartisan bill introduced yesterday on Capitol Hill.

Under the proposal, chipmakers would gain tax credits for investments in manufacturing equipment and facilities. This is part of a larger push by the Biden Administration, who has earmarked $52 billion in funding for the industry.

“This new legislation will take an additional step in helping American manufacturers make semiconductor chips here at home so this shortage won’t happen again,” Democratic Senator Debbie Stabenow, a co-sponsor of the bill, said in a statement.