“It does nothing to protect the United States economy or national security to have another fab or manufacturing facility located somewhere else around the world," Cornyn said. “We need them here."
The bill coming before the Senate this week is much narrower than legislation that both chambers had passed this Congress. The stripped-down measure contains the $52 billion in financial incentives and research, plus another $1.5 billion for a fund that would encourage competition to companies like Huawei in building 5G networks. The bill will also institute a 25% investment tax credit for investments in semiconductor manufacturing.
The legislation would also prohibit aid recipients from expanding or building new manufacturing plans for certain advanced semiconductors in China or another foreign country of concern, according to a draft of the legislation obtained by The Associated Press.
Senate Majority Leader Chuck Schumer told senators Monday that he wants lawmakers from the House and Senate to continue working on a broader bill to boost the semiconductor industry and scientific research in the U.S., but for now, he plans to hold the first procedural vote on the narrower measure Tuesday. He said manufacturers are “not going to wait around forever."
"Countless of good paying American jobs are on the line. Billions of dollars in economic activity are on the line. And as I said, our very national security is at stake," Schumer said.
The Biden administration has touted the financial incentives for the computer chip industry as a way to create jobs in the U.S. while also relieving inflation pressures in the long-term on automobiles, computers and other high-tech products that rely on computer chips.