Comment The Senate is poised Wednesday to pass a bipartisan bill that would provide $52 billion in subsidies to domestic semiconductor makers and invest billions in science and technology innovation, in an effort to boost the United States’ competitiveness and self-reliance in what is seen as an industry key to economic and national security. The legislation — which has had many nicknames, but which Senate Majority Leader Charles E. Schumer (DN.Y.) called the “Chip and Science” bill — has been in the works for nearly two years. It looks like the spread The United States Innovation and Competitiveness Act, the original form of the bill, passed the Senate last year but foundered in the House. If the Senate passes the legislation Wednesday, as expected, it will move to the House, where Speaker Nancy Pelosi (D-Calif.) said she has the support for a vote. Key members of Congress said they could have the bill on President Biden’s desk by the end of the week. “It’s an important step forward for our economic security, our national security, our supply chains and, as I said, America’s future,” Schumer said Tuesday. “I feel so passionately about this bill. It’s not one of those things that, you know, people right now say, “Oh yeah, we have to do that.” But it is something we must have done.” Three months, 700 steps: Why it takes so long to make a computer chip Much of the $52 billion will go to microchip makers to incentivize the construction of domestic semiconductor manufacturing plants – or “fabs” – to make the chips, which are used in a wide variety of products, including motor vehicles, mobile phones, medical equipment and military weapons. The shortage of semiconductor chips during the coronavirus pandemic has caused price increases and supply chain disruptions in several industries. Biden said legislation to fund chip manufacturing is one of the top priorities on his agenda and called on Congress to bring the bill to his desk as soon as possible. “We are close. We’re close,” Biden said Monday. “Well, let’s do it. So much depends on it.” Commerce Secretary Gina Raimondo, who is leading White House efforts to lobby for the bill, noted Monday at a White House meeting with business and labor leaders that the United States used to make 40 percent of the world’s chips but now does about 12%. — and “virtually none of the top chips,” sourced almost entirely from Taiwan. The United States has invested “almost nothing” in semiconductor manufacturing, he said, while China has invested $150 billion to develop its domestic manufacturing capacity. Raimondo also said it is critical for the United States to be able to compete with countries around the world that provide subsidies to semiconductor companies to build factories. “Chip funding will be the deciding factor in where these companies choose to expand,” Raimondo said. “We want them, we need them, to expand here in the United States.” The White House has also highlighted the semiconductor chip shortage as a national security issue. In an interview Tuesday with Washington Post Live, Sen. Kyrsten Sinema (D-Ariz.), an original co-sponsor of the bill, said some senators participated in a classified briefing a few weeks ago in which they learned about some of the geopolitical concerns facing the United States. “And it helped create a greater sense of urgency, I hope, in both the House and the Senate … to help everybody see how important and how urgent this is,” Sinema said. “The good news is that we were able to respond quickly to this. And I expect, by the end of the week, our bill will be in the president’s office.” On Tuesday, the Senate voted 64-32 to limit debate and move the Chip and Science bill to a final vote. The Senate’s advance of the bill on Tuesday came after months of debate and setbacks, and the measure was nearly stymied further by weather delays and the absence of several senators who tested positive for the coronavirus recently. Although there was bipartisan support in the Senate to advance the bill, several key Republican senators voted no. Among those opposed are retired Sens. Richard C. Shelby (Ala.) and Patrick J. Toomey (Pa.). Sen. Tommy Tuberville (R-Ala.) also opposed advancing the bill, despite Lockheed Martin CEO Jim Taiclet wholeheartedly endorsing the legislation in his meeting with Biden the day before, stressing that semiconductor chips it is a critical component of Javelin missiles. made in alabama. Sen. Bernie Sanders (I-Vt.), who voiced his opposition to the bill before Tuesday’s vote, also voted against advancing the legislation. Sanders criticized the bill as one that would give “blank checks to profitable microchip companies.” Sen. Todd C. Young (R-Ind.), a co-sponsor of the legislation, rejected that idea, saying he saw the bill as a national security investment. “Ronald Reagan used to say often that defense is not a budget issue,” Young said in an interview with Washington Post Live. “You spend what you need, and if this economy during the pandemic so far has shown anything, it’s that we need a more resilient economy.” Pelosi has vowed to move quickly on the bill once it reaches the House. At an event in Michigan on Friday with labor leaders and the state’s congressional delegation, he said there was some support for the bill from GOP lawmakers in the House. “They understand the national security aspects,” Pelosi said. “I don’t know how many [Republican votes] we have, but it will be bipartisan.” Jeanne Whalen contributed to this report.
