U.S. Congress selects negotiators to provide USD 52 billion chip subsidy deal

According to the latest report, the U.S. Senate and House of Representatives said on Thursday that after months of discussions, they had selected negotiators to reach an agreement on a bill to provide $52 billion in government subsidies for semiconductor production.

House Speaker Nancy Pelosi, a Democrat, and House Republican leader Kevin McCarthy nominated about 80 members of the House, including the chairmen of some key committees and top Republicans. They will participate in a process called a “conference committee” to arrive at a compromise version.

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The Senate, which first passed chip legislation last June, also authorized $190 billion to bolster U.S. technology and research to compete with China. The House of Representatives passed the bill in early February with different provisions aimed at promoting competition with China.

Persistent chip shortages across the industry have disrupted production in the auto and electronics industries, forcing some companies to scale back production, the report said. At the same time, there are growing calls to reduce reliance on semiconductors from other countries.

In addition, Senate Majority Leader Chuck Schumer, a Democrat, and Mitch McConnell, the Republican leader, said Thursday they have also nominated 13 negotiators.

“The Senate must now reinstate a bill that has passed with bipartisan support. Without significant concessions and changes from House Democrats, this legislation has no chance of becoming law,” McConnell said.

“Negotiators will ensure that bills passed by the Senate continue to play a role in creating more high-paying jobs, boosting domestic manufacturing, and inspiring American creativity,” Schumer said.

(via)