US companies to make chips – level 2

06-03-2023 15:00

In August last year, the US government passed a law which will support tech companies.

The CHIPS Act will provide subsidies of 39 billion dollars, and the aim is to keep the US ahead of China. But there are some rules, which the companies applying for a subsidy will have to keep. They will have to share their profit, and they will have to provide childcare to their employees.

Some companies already announced more than 40 new projects which will increase US production. Many people hope that the US will become a leader in the semiconductor business and that the country will become independent of chips from Taiwan.

Difficult words: subsidy (money which a government pays to help an industry or business), aim (what someone wants to achieve), semiconductor (a material which is part of computers and other electronic devices).

You can watch the original video in the Level 3 section.

Do you think that the CHIPS Act will be successful in supporting the US tech industry? Why or why not?


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