The House passed the bill 243 to 187, with 24 Republicans voting alongside 219 House Democrats, on Thursday.
The bill, a Biden administration priority, includes $52 billion in subsidies to encourage chip manufacturers to build out semiconductor fabrications plants, or “fabs”, in the US, reports The Verge.
Biden is now expected to sign the bill into law anytime soon.
On Wednesday, the US Senate passed a $280 industrial policy bill 64 to 33, with 17 Republicans voting in favour.
“The American people may not know it, but semiconductors are integral to their everyday experiences. They are microchips that are used in automobiles, consumer electronics, and washing machines,” said Democrat Representative Frank Pallone Jr in a statement.
The CHIPS and Science Act is the Biden administration’s bet to incentivise chipmakers to reverse course and build fabs in the US.
“For decades, some aexperts’ said we needed to give up on manufacturing in America. I never believed that. Manufacturing jobs are back,” President Joe Biden said in a statement. “Thanks to this bill, we are going to have even more of them.”
The bill also creates a 25 per cent tax credit for semiconductor manufacturing, earmarks $1.5 billion for technology development for US firms dependent on foreign telecommunications, according to Forbes.
Earlier this month, the groundbreaking ceremony for a $20 billion Intel chip factory was delayed while the funding remained stalled.