Senate Sets Up $52 Billion Semiconductor Vote
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A $52 billion boost to the U.S. domestic semiconductor industry moved one step closer to reality July 26 when the Senate advanced legislation providing grants, incentives and tax breaks to the sector and set it up for final passage this week.
“It’s a major step for our economic security, our national security, our supply chains and, in fact, for America’s future,” Senate Majority Leader Chuck Schumer said July 26 on the Senate floor before a procedural vote on the bill. “With this bill we will reawaken the spirit of discovery, innovation, invention and optimism that made America the envy of the world.”
The 64-32 vote was to end unlimited debate, a necessary step before it can be considered on the floor. Schumer said senators should expect to vote on passage of the bill soon. From there, the House is expected to take up the legislation and pass it, likely before the end of the week, sending it on to President Joe Biden for his signature.
In addition to the $52 billion in grants and subsidies the bill would funnel to semiconductor manufacturers that build facilities in the U.S., the legislation includes funding for research and workforce training as well as money for 5G wireless technology. It also includes a 25% tax credit for semiconductor manufacturing, which contributes to a $79 billion deficit increase score for the bill.
“The logic — the economic and national security logic — of this bill and this vote are overwhelming,” said Brian Deese, director of the National Economic Council.
— With assistance from Erik Wasson and Josh Wingrove.
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