The United States Senate passes a $ 52 billion bill in an attempt to reach a compromise

    Home / Business Economy / The United States Senate passes a $ 52 billion bill in an attempt to reach a compromise

The United States Senate passes a $ 52 billion bill in an attempt to reach a compromise

0

Semiconductor chips are seen on a computer printed circuit in this illustrative photo taken on February 25, 2022. REUTERS / Florence Lo / Illustration

Register now for FREE unlimited access to Reuters.com

WASHINGTON, March 28 (Reuters) – The US Senate approved a bill on Monday to provide $ 52 billion in US semiconductor chip manufacturing subsidies in an effort to reach a compromise after months of discussions.

The 68-28 procedural vote sends the legislation back to the House of Representatives in a cumbersome process to eventually initiate a formal process known as a “conference” in which lawmakers from both chambers will seek agreement on a compromised version.

A persistent shortage of chips across the industry has disrupted production in the automotive and electronics sectors, forcing some companies to cut production, and there have been growing demands to reduce dependence on other countries for semiconductors.

Register now for FREE unlimited access to Reuters.com

The Senate first passed the chip legislation in June that also authorized $ 190 billion to bolster US technology and research to compete with China, while the House passed its version in early February.

The bills take different approaches to addressing US competitiveness with China on a wide range of issues, as well as trade and certain climate provisions.

Senate Trade Committee Chair Maria Cantwell said the vote was crucial to “getting us into real negotiations”

White House spokesperson Jen Psaki said the Senate vote was another step “to strengthen our supply chains, do more in America and outpace competition from China and the rest of the world for decades to come. We look forward to the House of Representatives moving quickly to begin the formal conference process as well. “

A senior Democratic aide to the House said the House is ready to take the measure and send it back to the Senate as soon as this week is out. The Senate will have to vote again to start the conference. A final agreement may not be reached before the summer.

Independent Senator Bernie Sanders criticized the $ 52 billion in subsidies, calling it “corporate greed,” and said taxpayers should get warrants or shares from profitable chip companies in exchange for subsidies.

“The financial gains made by these companies must be shared with the American people, not just the 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 today it accounts for only 12% of global production. The Senate vote moved the United States “one step closer to reviving American semiconductor manufacturing, protecting our critical supply chains and bringing home good quality manufacturing jobs.”

On Friday, General Motors (GM.N) said it would halt production at a pickup truck plant in Indiana for two weeks in April due to a chip shortage.

Register now for FREE unlimited access to Reuters.com

Reporting by David Shepardson; Editing by Leslie Adler

Our Standards: Thomson Reuters Trust Principles.

.

Leave a Reply

Your email address will not be published. Required fields are marked *