US Senate approves $52 billion chip bill in attempt to reach compromise
Here are the main FOX Business Flash headlines for March 28th.
WASHINGTON — The U.S. Senate on Monday approved another bill to provide $52 billion in U.S. subsidies for semiconductor chip manufacturing in a bid to find a compromise after months of discussion.
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The 68-28 procedural vote sends the legislation back to the House of Representatives in a cumbersome process to eventually launch a formal process known as a “conference” where lawmakers from both chambers will agree on a compromise version.
An ongoing industry-wide shortage of chips has disrupted production in the automotive and electronics industries, forcing some companies to scale back, and there are mounting calls to reduce other countries’ reliance on semiconductors.
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The Senate first approved chip legislation in June that also allowed $190 billion to bolster US technology and research to compete with China, while the House approved its version in early February.
The accounts take different approaches to address US competitiveness with China on a wide range of topics, as well as trade and some climate provisions.
The US Senate on Monday approved another bill to provide $52 billion in US subsidies for semiconductor chip manufacturing in a bid to find a compromise after months of debate. (Photo illustration by Ulrich Baumgarten via Getty Images) (Photo illustration by Ulrich Baumgarten via Getty Images/Getty Images)
Senate Commerce Committee Chair Maria Cantwell said the vote was crucial to “bringing us into real negotiations.”
White House spokeswoman Jen Psaki said the Senate vote was another step “to strengthen our supply chains, earn more in America and China, and outperform the rest of the world in the coming decades. We look forward to it.” House of Representatives will soon start the formal conference process as well.”
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A senior Democratic aide to the House of Representatives said the chamber plans to return the measure to the Senate later this week. The Senate will have to vote again to launch the conference. A final agreement may not be reached until the summer.
Independent Senator Bernie Sanders criticized the $52 billion in subsidies, calling it “corporate greed” (Kent Nishimura/Los Angeles Times via Getty Images) (Kent Nishimura/Los Angeles Times via Getty Images/Getty Images)
Independent Senator Bernie Sanders criticized the $52 billion in subsidies, calling it “corporate greed” and saying taxpayers should be given warrants or shares of profitable chip companies in exchange for subsidies.
“The financial profits of these companies should be shared with the American people, not just wealthy shareholders,” Sanders said.
US Secretary of Commerce Gina Raimondo noted that two decades ago the United States produced nearly 40% of all chips, while now it accounts for only 12% of global production. The Senate vote moved the United States “one step closer to revitalizing U.S. semiconductor manufacturing, securing our critical supply chains and bringing home high-quality manufacturing jobs.”
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On Friday, General Motors said it would halt production at a pickup truck plant in Indiana for two weeks in April due to the shortage of chips.