U.S. Senate authorizes USD 52 billion chip subsidy bill

According to the latest reports, the U.S. Senate again approved a bill to provide $52 billion in subsidies to U.S. semiconductor chipmakers on Monday, hoping to reach a compromise after months of discussions.

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The vote returned the legislation to the House of Representatives by a vote of 68 to 28. It’s a cumbersome process that will eventually kick off a process called a “conference” for lawmakers in both chambers to agree on a compromise version.

A persistent chip shortage sweeping across the semiconductor industry has hit the auto and electronics industries, forcing some companies to cut production and leading to calls across the U.S. to reduce chip reliance on other countries.

The Senate first passed the chip legislation last June and authorized $190 billion to strengthen U.S. technology research and development, and the House of Representatives passed its own version in early February.

Moreover, these bills take different approaches to addressing related issues. Senate Commerce Committee Chairman Maria Cantwell said the vote was critical “to get to real negotiations.”

White House spokeswoman Jen Psaki said the Senate vote was about “strengthening our supply chain, producing more in the U.S., and becoming more competitive to outcompete China and the rest of the world for decades to come.” Another step is taken. He also said: “We expect the House of Representatives to move quickly and initiate a formal session process.”

A top House Democratic aide said the House would take up the matter, sending it back to the Senate as early as later this week. The Senate needs another vote to start the session. A final deal may not be reached until the summer.

Independent Senator Bernie Sanders has criticized the $52 billion in subsidies, calling it “corporate greed.” He argues that as a condition of the subsidy, taxpayers should receive warrants or equity from profitable chip companies.

” The financial benefits of these companies must be shared with Americans, not just by wealthy shareholders, ” Sanders said.

U.S. Commerce Secretary Gina Raimondo pointed out that the U.S. produced nearly 40 percent of the world’s chips 20 years ago, but only 12 percent today.

She said the Senate vote ” is one step closer to revitalizing U.S. semiconductor manufacturing, securing our critical supply chain, and bringing back high-quality manufacturing jobs .”

Furthermore, General Motors said on Friday that the company’s Arizona pickup truck plant will suspend production for two weeks in April due to a shortage of chips.

(via)