US companies to make chips – level 1

US companies to make chips

06-03-2023 15:00

In August last year, the US government passes a law. This law is called the CHIPS Act. It helps companies which produce semiconductors.

Companies can ask for a subsidy. A subsidy is money which a government pays to help an industry or business. The CHIPS Act offers 39 billion dollars to tech companies. The reason is that the US wants to make its own chips. Now, the world depends on chips from Taiwan. The US wants to be better than China. The country needs to become independent of Taiwan.

Companies which want the subsidy must follow some rules. They will share a part of their profit. They must offer childcare to their employees.

Difficult words: semiconductor (a material which is part of electronic devices), profit (money which a business makes), employee (a person who works in a company).

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

What do you think of the CHIPS Act? Why?

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