ContributorsPublishersAdvertisers

US lawmakers mull computer chips, China competition bill

AFP
AFP
 2022-01-26
https://img.particlenews.com/image.php?url=4cijdT_0dwFFmJQ00
US President Joe Biden has pressed companies to expand chip production amid a shortage that has driven inflation /AFP/File

US lawmakers were studying proposals Wednesday to jumpstart high-tech research and manufacturing, boost competition with China and ease a global shortage of crucial computer chips.

The House Democrats' "America Competes" bill, unveiled late Tuesday, is their version of the Senate's $200 billion US Innovation and Competition Act, aimed at addressing supply bottlenecks.

The move came after the US Commerce Department said Tuesday that companies have an average of less than five days' worth of semiconductor chips on hand, leaving them vulnerable to shutdowns.

President Joe Biden wants to invest $52 billion in domestic research and production, but House Democrats have been sitting on a bill that passed the Senate in June with cross-party support.

Speaker Nancy Pelosi recently listed the package as a top priority, with supply chain issues increasingly worrying manufacturers.

The White House, which sees the initiative as the main legislative tool to combat China's growing prowess, has also been pushing the House of Representatives behind the scenes to move the bill quickly.

"The proposals laid out by the House and Senate represent the sort of transformational investments in our industrial base and research and development that helped power the United States to lead the global economy in the 20th century and expand opportunity for middle class families," Biden said in a statement late Tuesday.

Chip demand is currently 20 percent higher than its level in 2019, according to government officials, and companies expect more orders than supply for another six months.

The 2,900-page House version of the bill is set to be controversial, however, as it includes a proposal that the US Chamber of Commerce pushed to be taken out of the Senate bill -- new government screening protocols for investments in US rivals such as China.

Meanwhile, Republicans complained they had been left out of discussions to formulate the package.

"We have been in talks with House and Senate committees of jurisdiction for weeks, trying to put together a bipartisan bill that could pass Congress," Texas Republican congressman Michael McCaul said in a statement.

"Rather than allowing those talks to play out, Speaker (Nancy) Pelosi and House Democrats have decided to torpedo the chance of a bipartisan, bicameral bill to confront the generational threat posed by the Chinese Communist Party."

Comments / 122

Biden is senile
01-26

Make chips and essential items necessary to run this country. Stop the Hunter deals with China 🇨🇳 to feed the Biden crime family. Did you not learn anything during Covid. So many items floating in the ocean outside the country of California.

Reply(14)
37
Eric Brakke
01-26

Samsung is building a megaplant in Texas to make microchips. The private sector has it handled. They keep dumping money into the economy and printing it thereby devaluing the dollar and people have more money to spend than they should have that's the bottleneck stop dumping money into the economy let the economy settle into a normal pace please leave it alone and it'll be fine

Reply(9)
24
Dominic Disciullo
01-26

Joe you can’t get them made in America Unions and Taxes have kept Factories and industries out. The 2 Major industries are Food and Retail both are minimum wage jobs. China has already taken a lot of the Meat processing Plants over. Thank you Democrats

Reply(3)
13

Comments / 0