A bipartisan group of senators has introduced a bill that would strengthen U.S. semiconductor supply chains by incentivizing domestic manufacturing of this key technology and “stop China from winning the race to produce these chips.” The bill, called the Facilitating American-Built Semiconductors (FABS) Act (pdf), seeks to push back against the trend that has seen the United States’s share of global semiconductor production fall from 37 percent in 1990 to just 12 percent today. “As much as 70 percent of the cost difference for producing semiconductors overseas is driven by foreign subsidies, rather than comparative advantages,” the senators wrote in a June 17 release. “The senators’ bill would close that gap by incentivizing production of semiconductors in the United States.” The legislation aims to amend the Internal Revenue Code of 1986 to establish a semiconductor manufacturing investment credit. “Our bill would provide a significant investment tax credit to companies that build chips …