Biden signs bill to compete with China to boost US chip production

[The stream is slated to start at 2:45 p.m. ET. Please refresh the page if you do not see a player above at that time.]

President Joe Biden on Tuesday will sign into law a bipartisan bill that invests billions of dollars in domestic semiconductor manufacturing and scientific research, with the aim of strengthening America’s competitiveness with China. and other foreign competitors.

The signing marks a victory for Biden, who has campaigned for access across the aisle and has pushed Congress to pass legislation as a matter of necessity to America’s economy and national security. .

Receipt, known as the Science and Chips Act, includes more than $52 billion for American companies that make computer chips, as well as billions in tax credits to encourage investment in chip manufacturing. It also provides tens of billions of dollars to fund scientific research and development, and to spur innovation and the development of other U.S. technologies.

The House and Senate passed the bill last week with nearly unanimous support from Democrats. One-third of Republican senators supported the bill, including Senate Minority Leader Mitch McConnell of Kentucky. Two dozen Republicans in the House also voted for it, though others withdrew their support on the eve of the final vote after Senate Democrats reveal the plan quickly through a unrelated partisan reconciliation bill.

Democrats want that tax and spending package, led by Senate Majority Leader Chuck Schumer, DN.Y. and Senator Joe Manchin, DW.V., leader, go to the polls before Congress leaves Washington, DC, for recess in August. They hope to pass it without a Republican vote in the Senate, where the parties are split 50-50 and Vice President Kamala Harris holds an inconclusive vote.

McConnell had previously warned Democrats that GOP lawmakers would not support the semiconductor bill if they continued to work on a settlement package. Negotiations between Schumer and Manchin over such a package had surfaced weeks earlier – but just hours after the Senate voted to pass the Chips and Science act, Democrats revealed they had reached it. a deal.

Republicans reacted angrily, and the House minority office instructed GOP members in a late-night memo to oppose the fries bill as it went on Thursday. “They lied about reconciliation,” House Minority Leader Kevin McCarthy, R-Calif., said on the morning of voting day.

CNBC Politics

Read more political news from CNBC:

Democrats, meanwhile, celebrated the bill’s passage. “It’s now moved to the White House for the president’s signature and a better future for our country,” House Speaker Nancy Pelosi, D-Calif., said during a ceremony at the Palace. Capitol on Friday morning.

Advocates say it is important for the United States to ramp up production of semiconductors, which are increasingly important components in a range of products including consumer electronics, automobiles, healthcare devices and more. and weapon systems.

Biden has also blamed chip shortages for the high inflation that has plagued his presidency. The lack of chips available for the production of new cars is related to Used car prices soaris driving inflation higher.

The chips have been in short supply for the time being Covid-19 pandemic. Factory shutdowns at the beginning of the outbreak have hampered chip production in Asia while consumer demand for chip-requiring upgraded cars and home electronics surged in the meantime. downtime. The US share of global chip manufacturing has also plummeted in recent decades, while China and other countries have invested heavily in the industry.

The United States produces very few of the most advanced semiconductors, most of which are made in Taiwan. Pelosi and a delegation of five House Democrats arrived on that island, the source of significant tensions with China, early Tuesday during a tour of Asia.

The speaker said the trip was intended to reaffirm the United States’ relationship with allies in the region, including Singapore, Malaysia, South Korea and Japan. But China, which asserts control over Taiwan, has deploy increasingly belligerent rhetoric towards the United States in response to the tour.

Source link


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button