World News for Students of English

06-03-2023 15:00

US semiconductor companies that want a piece of the 39-billion-dollar CHIPS Act will be required to share excess profits and explain how they plan to provide affordable childcare to employees.

This is part of the deal of accepting government funds; however, some experts worry that it could cause some apprehension from potential subsidy recipients. Since the legislation was passed in August, the tech industry has taken a hit, and it’s what drives the demand for chips.

The CHIPS Act is vital to keep the US ahead of China in global markets and reduce reliance on chips made in Taiwan. Semiconductor companies have already announced more than 40 new projects including nearly 200 billion dollars in private investments to increase domestic production. These should help the US gain pre-eminence in the semiconductor market.

Difficult words: apprehension (fear that something bad or unpleasant will happen), subsidy (money that a government pays to help an industry or business), pre-eminence (the quality of being more important or better than others).

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