A $52 billion boost to the U.S. domestic semiconductor industry moved one step closer to reality July 26 when the Senate advanced legislation providing grants, incentives and tax breaks to the sector and set it up for final passage this week.

WASHINGTON — A bill to boost semiconductor production in the United States has managed to do nearly the unthinkable — unite the democratic socialist Sen. Bernie Sanders and the fiscally conservative right.

Bringing more semiconductor production to the U.S. could help counter the global chip shortage, a survey by the Association of Equipment Manufacturers showed.

The Senate’s bipartisan bill to strengthen the nation’s technology sector in the face of Chinese competition was estimated July 21 to increase U.S. budget deficits by $79 billion over a decade if enacted.

A drive in the Senate to quickly pass $52 billion in grants and incentives for U.S. semiconductor manufacturing picked up steam in Congress despite last-minute lobbying for changes.

The U.S. is pushing the Netherlands to ban ASML Holding NV from selling to China mainstream technology essential in making a large chunk of the world’s chips, expanding its campaign to curb the country’s rise, according to people familiar with the matter.

Semiconductor stocks took a beating after a grim profit warning from Micron Technology Inc. sparked fresh worries about corporate America’s earnings power with the U.S. potentially heading for a recession.

China’s chip industry is growing faster than anywhere else in the world, after U.S. sanctions on local champions from Huawei Technologies Co. to Hikvision spurred appetite for home-grown components.

China’s semiconductor industry is showing signs of flourishing even in the face of Biden administration efforts to counter its growth, raising alarm bells in Washington.

Computer chip and software maker Broadcom will spend about $61 billion to acquire the cloud technology company VMware, one of the biggest deals of the year despite rising inflation and economic uncertainty.