US lawmakers urge speedy action on funding for semiconductor production and research
- The funding will ‘help prevent future shortages that cause GDP drag, job losses, more expensive consumer goods, and national security vulnerabilities’, lawmakers said
- A persistent industry-wide shortage of chips has disrupted production in the car and electronics industries, forcing some firms to scale back production
A bipartisan group of more than 140 US lawmakers on Tuesday urged leaders in Congress to approve US$52 billion in government subsidies for semiconductor chip production and research.
The US House of Representatives on February 4 narrowly passed a bill aimed at increasing American competitiveness with China in part by allocating US$52 billion to boost US semiconductor manufacturing.
The funding will “help prevent future shortages that cause GDP drag, job losses, more expensive consumer goods, and national security vulnerabilities", said a letter signed by lawmakers, including Representative Doris Matsui and Senator Mark Warner, both Democrats, and Republican Representative Michael McCaul and Senator John Cornyn.
The lawmakers urged Speaker Nancy Pelosi, Majority Leader Chuck Schumer, Minority Leader Mitch McConnell and House Minority Leader Kevin McCarthy to “immediately begin negotiations to allow votes in the House and Senate as soon as possible”.
President Joe Biden is set to hold an event on semiconductors on Wednesday to meet with business leaders and again push for quick passage.
Last month, 22 governors also urged quick action on chips funding.
A persistent industry-wide shortage of chips has disrupted production in the car and electronics industries, forcing some firms to scale back production.