WASHINGTON — A bill designed to encourage more semiconductor companies to build chip plants in the United States was passed by the Senate Wednesday as lawmakers rushed to complete work on a key Biden government priority.
The $280 billion measure, pending a House vote, includes federal grants and tax breaks for companies that build their chip facilities in the US. economically competitive in the coming decades.
The passage of the Senate came with 64-33 votes. The House vote is expected later this week as lawmakers try to wrap things up before returning to their home states and districts in August. House Speaker Nancy Pelosi, D-Calif., has said she is confident there is enough GOP support to overcome potential defections from Democrats who view subsidy efforts to boost semiconductor companies as a misguided priority.
Proponents of the legislation say other countries are spending billions of dollars to lure chipmakers. Backers say the US must do the same or risk losing a safe supply of the semiconductors that power cars, computers, appliances and some of the military’s most advanced weapon systems. The auto industry, in particular, has been plagued by supply chain problems, largely caused by a shortage of chips since the Covid lockdowns in 2020.
Senate Majority Leader Chuck Schumer, DN.Y., said the bill represents one of the country’s largest investments in science and manufacturing in decades and that, with Senate approval, “we’re saying America’s best years yet to come.”
Opponents were critical of the bill’s price tag. Federal deficits are expected to increase by about $79 billion over the next 10 years.
President Joe Biden said the bill would create jobs and cut costs for a wide variety of products, from cars to dishwashers.
“For decades, some ‘experts’ said we should give up production in America. I never believed that. Manufacturing jobs are back,” Biden said. “Thanks to this bill, we’re getting even more. The House must pass it quickly and send this bill to my desk.”
The bill has been years in the making, starting with efforts by Schumer and Sen. Todd Young, R-Ind., to increase government investment in high-tech research and development. While the bill has taken several twists and turns, a constant theme that lawmakers repeatedly emphasized during Wednesday’s debate was the need to keep up with China’s massive investment in advanced technology.
The Chinese government plans to “win the (artificial intelligence) race, win future wars and win the future,” Young said. “And the truth is that if we are honest with ourselves, Beijing is well on its way to achieving these goals.”
sen. Roger Wicker, R-Miss., said: “Unfortunately, we are not in charge of a set of key technologies. China does.” Congress, he said, now has “a chance to steer us back in the right direction and bring America back to a place to win the game.”