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Bill to boost US chip production and compete with China clears key Senate hurdle


Thunderstorm clouds roll over the US Capitol on July 25, 2022 in Washington, DC.

Chip Somodevilla | beautiful pictures

A bipartisan bill aimed at boosting domestic semiconductor production and enhancing America’s competitiveness with China has passed a key Senate vote, setting it for final passage in the chamber. in the coming days.

The so-called vote to break the legislature was originally set for Monday night, but was postponed until Tuesday morning after severe thunderstorms on the East Coast disrupted the plan. travel of some senators.

Senate Majority Leader Chuck Schumer, DN.Y., said he hopes lawmakers “can stay on track to get this legislation completed as soon as possible.”

The package, called “CHIPS-plus,” includes about $52 billion in grants to U.S. companies that make computer chips and a provision that provides tax credits for investments in chip manufacturing. It also provides funding to promote innovation and the development of other U.S. technologies.

If it passes the Senate as scheduled, the House will then absorb the law. Supporters of the bill hope Congress will pass it and send it to President Joe Biden for his signature before the August recess, which begins in two weeks.

Proponents of the legislation say it is vital to the economic interests and national security of the United States in a world increasingly dependent on technological progress. They also argue that the bill could help counter the effects of the global chip shortage caused by Covid, and put the US in a more competitive position with China, which has invested heavily in manufacturing capabilities. export its own chips.

“America invented the semiconductor. It’s time to bring it home,” Biden said during a meeting at the White House on Monday afternoon. The chairman, who tested positive for Covid last week, was mostly in the meeting.

Biden said the law “will enhance our nation’s competitiveness and our technological advantage,” and urged Congress to “pass this bill as soon as possible.”

CHIPS-plus is an abridged version of the broader legislation that has long existed in the House and Senate. Bigger measures threatened from Republican leadership in the first day of this month.

The thinner bill passed an early procedural motion last week in a 64-34 bipartisan vote.

The votes go to Sens. Joe Manchin, DW.V. and Lisa Murkowski, R-Alaska, both separately announced Monday that they tested positive for Covid. Both senators said they would work remotely and follow CDC allocation guidelines, but Senate rules require them to vote in person.

Their diagnoses are not expected to derail the Senate’s attempt to pass CHIPS-plus, but could thwart Democrats’ other legislative goals ahead of the August recession.

Meanwhile, the Biden administration wants Congress to act now.

During Monday’s meeting with Biden, national security adviser Jake Sullivan warned of the enormous national security risks “that we face right now, today,” due to vulnerabilities. in the supply chain made worse by the pandemic.

“The United States’ continued dependence on semiconductor manufacturers abroad is ‘unbelievably dangerous,’ and disruption to our chip supply would be catastrophic,” said Sullivan. “The longer we wait, the more dangerous the disruption.”

Executives from Lockheed Martin, jet engine maker Cummins and medical device maker Medtronic echoed those national security arguments during the meeting.

Chris Shelton of the major U.S. Media Workers union told Biden: “There is no doubt that we need a holistic approach to competing with and dealing with China’s unfair trade practices. Country.”



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