On Monday, the US Senate approved a bill to provide $52.00 billion in American subsidies for semiconductor manufacturing companies.
Accordingly, the 68-28 procedural vote sends the legislation back to the House of Representatives in a cumbersome process.
It will now be under a formal proceeding known as a conference. Correspondingly, lawmakers from both chambers will seek agreement on a compromise version.
Senate Commerce Committee chair Maria Cantwell mentioned that the vote was crucial to proceed to final negotiations. Some anticipated that the bill would not close until summer.
White House spokeswoman Jen Psaki said that was another step to strengthen the country’s supply chains.
She also mentioned that they look forward to the House of Representatives moving quickly with the process.
The act is in a bid to reach a compromise after months of discussions. The Senate initially passed the chips bill last June, while the House passed its version in early February.
They both intended to strengthen US technology and research to compete with China. Nevertheless, the bills take different approaches to addressing American competitiveness.
They single out a wide range of issues and trade and some climate provisions.
Meanwhile, Independent Senator Bernie Sanders criticized the $52.00 billion in subsidies. He called the legislation a form of corporate greed.
He further stated that taxpayers should get warrants or equity from profitable chips firms in exchange for subsidies.
The US produced nearly 40.00% of all chips worldwide in the past two decades. However, it now only accounts for only 12.00% of global production.
Subsequently, the Senate vote moved the United States one step closer to strengthening its semiconductor manufacturing sector.
The bill’s passing would secure critical supply chains and bring home good-quality manufacturing jobs.
Intel, Micron push hard for US subsidies
US chipmakers Intel and Micron emphasized that the Chips bill will ensure the future of the American chip industry.
The companies also cited the significance of reducing reliance on semiconductor firms in Asia, acting as a hedge against global geopolitical instability.
They stated that the ongoing tension between China and Taiwan is a crucial reason why the bill should pass.
Intel vowed to invest $100.00 million in new education and research opportunities in the US. It would help build a pipeline of new electrical engineers and semiconductor technicians.
Similarly, Micron mentioned financing $150.00 billion to the sector over the next decade. It would ramp up its commitment to research, development, and manufacturing.
Meanwhile, automaker General Motors announced on Friday that it would halt production at a pickup truck plant in Indiana.
The suspension would be for two weeks in April because of the chip shortage.
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