Congress Readies Semiconductor Production Bill Negotiations
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A proposal to provide $52 billion for domestic semiconductor production is on the radar of congressional leaders as they set off on their spring legislative agenda.
With federal government funding affairs solidified through Sept. 30, Democratic and Republican leaders signaled that the process for reconciling differences in legislation meant to anchor domestic semiconductor manufacturing is imminent.
Senior aides and stakeholders familiar with congressional negotiations anticipate a final bill to emerge by mid-April, with the potential for floor action in May.
Last year, the Senate passed the U.S. Innovation and Competition Act (USICA). The House recently advanced its version. Both versions aim to boost the U.S. semiconductor industry as China dominates aspects of the technology research and manufacturing sectors.
Cantwell
Sen. Maria Cantwell (D-Wash.), chairwoman of the Commerce committee on freight policy and among the bill’s champions, repeatedly has called on colleagues to rush the approval of a final version of the legislation.
“We have to choose to lead, to invest in technology. That technology brought us places like Huntsville, Ala., and Houston, Texas. In 2020, the aerospace industry supported 2 million good-paying jobs with an average salary of over $100,000 per year and generated $900 billion in revenue. That’s what the innovation economy did for us,” Cantwell said recently. “So that’s why we want to now upgrade the innovation, particularly as it relates to semiconductors. Since the availability of these tiny chips, one of the most pressing issues facing our country now is people can’t get access to them.”
Sens. Amy Klobuchar and John Thune
Cantwell also has emphasized provisions linked to the Ocean Shipping Reform Act, which are included in the House version of the semiconductor legislation. Sens. Amy Klobuchar (D-Minn.) and John Thune (R-S.D.), Commerce Committee senior members, have introduced a version of the Ocean Shipping Reform Act. That bill is designed to update regulations across the global shipping industry by taking aim at the Federal Maritime Commission.
The Biden White House insists the semiconductor measure, which it refers to as the Bipartisan Innovation Act, is among its major domestic priorities. During a meeting with governors and industry leaders this month, President Joe Biden again pressed for congressional action.
The semiconductor was invented here in the United States of America. And over 30 years ago, America had 40% of the global production of semiconductors. But since then, something happened.
President Joe Biden
“The semiconductor was invented here in the United States of America. And over 30 years ago, America had 40% of the global production of semiconductors. But since then, something happened. American manufacturing — the backbone of our economy — got hollowed out,” he said. “Companies moved jobs and production overseas, especially from the industrial Midwest. As a result, today, we barely produce 10% of these computer chips, despite being a leader on chip design and research.”
Biden added, “This puts us at the mercy of shortages and supply chain bottlenecks. But we have an opportunity, we have an opportunity to reclaim the position of leadership. This innovation bill has bipartisan support in both House and Senate now.”
Raimondo
Commerce Secretary Gina Raimondo is among senior administration officials involved in discussions with lawmakers.
“Our competitors and trading partners are moving ahead to support their own semiconductor industries,” she said. “Thankfully, both the House and Senate have passed their own versions of the Bipartisan Innovation Act, vital legislation to increase America’s global competitiveness.”
Support for the measure has been expressed across various sectors. Freight industry stakeholders, for instance, are backing those legislative efforts on Capitol Hill. Jennifer Rumsey, president and chief operating officer of Cummins Inc., attended a roundtable discussion at the White House this month. “Our products do not run, in most cases, without semiconductors,” she said. “They’re critical for emissions and safety-control systems. And increasingly, we’re utilizing them as our technology advances.
“We have not been able to get enough. It has impacted our ability to build and deliver product to our customers. And it’s an issue we continue to deal with today. You know, because of the durability and harsh environment our products operate in, we have specific chips that are critical to continue to invest and fund here in the U.S.”
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