House passes bill to boost US computer chip production
Democrats have muscled legislation through the House that they say positions the U.S. to better compete with China economically by strengthening the domestic semiconductor industry and shoring up strained supply chains
February 4, 2022, 9:44 PM
6 min read
Share to FacebookShare to TwitterEmail this articleFILE - Employees wearing protective equipment work at a semiconductor production facility for Renesas Electronics during a government organized tour for journalists in Beijing, on May 14, 2020. House Democrats are poised to approve legislation Friday, Feb. 4, 2022, that they say positions the United States to better compete with China economically and on the global stage by strengthening the domestic semiconductor industry, shoring up strained supply chains and bolstering international alliances. (AP Photo/Mark Schiefelbein, File)
WASHINGTON -- Democrats on Friday muscled legislation through the House that they say positions the United States to better compete with China economically and on the global stage by strengthening the domestic semiconductor industry and shoring up strained supply chains.
The bill passed by a vote of 222-210. It marks an important step for a top Biden administration priority, but the legislation is likely to be extensively revised as negotiators reconcile differences with what the Senate passed about eight months ago. President Joe Biden urged lawmakers to reach a deal quickly, saying, “America can’t afford to wait.”
The nearly 3,000-page bill, not counting scores of amendments added this week, includes massive investments designed to boost semiconductor manufacturing in the U.S. The big-ticket items include about $52 billion in grants and subsidies to help the semiconductor industry and $45 billion to strengthen supply chains for high-tech products.
But Democrats also tucked in other priorities that have raised GOP concerns about the bill’s cost and scope. Rep. Adam Kinzinger of Illinois was the only Republican to vote for the measure, while Rep. Stephanie Murphy of Florida was the only Democrat to vote against it.
The bill includes $8 billion for a fund that helps developing countries adjust to climate change; $3 billion for facilities to make the U.S. less reliant on Chinese solar components; $4 billion to help communities with significantly higher unemployment than the national average; and $10.5 billion for states to stockpile drugs and medical equipment.
Democrats were in a celebratory mood prior to the vote after the latest jobs report showed employers added 467,000 jobs in January. They said the legislation would lead to more good news on that front.
“The bill we're talking about today is a jobs bill, a jobs bill for manufacturing in America, for making it in America," Pelosi said.
The bill gives Democrats a chance to address voter concerns about the economy at a time when a shortage of computer chips has led to higher prices for automobiles, electronics and medical devices. To show his administration is addressing inflation concerns, Biden highlighted the vote at a White House event Friday and reminded Americans of Intel's announcement two weeks ago that it would be building two computer chip production plants in Ohio.
Republicans, who for months have hammered Democrats over rising inflation, panned the measure as “toothless” and short of what is needed to hold China accountable for a range of economic and human rights actions. They also said it would waste taxpayer dollars on environmental initiatives and other unnecessary programs.
“This bill is actually just a long list of progressive dream policies that have nothing to do with China at all," said Rep. Michelle Fischbach, R-Minn.
Commerce Secretary Gina Raimondo met with House Democratic lawmakers this week to discuss the bill. She said the most “urgent need” in the bill is the $52 billion for domestic chip production because of the global chip shortage’s effect on the economy, including the automotive sector, and the national security implications of having so many semiconductors made overseas.
