The $ 52 billion bilateral deal will subsidize US semiconductor production to increase competitiveness with Chinese technology.
U.S. Democrats said Tuesday they hope to reach a $ 52 billion bipartisan agreement to subsidize U.S. semiconductor production and boost U.S. competitiveness with Chinese technology.
House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, both Democrats, met with House Speaker Kevin McCarthy and Senate Republican Leader Mitch McConnell to try to find a compromise, but did not announce an agreement.
Pelosi and Sumer issued a statement calling for swift action, saying they believed there was no reason the bill would not pass Congress in July.
“Democrats have already made adjustments in the name of reaching an agreement that we are optimistic could happen soon,” they said.
McCarthy and McConnell did not comment immediately.
Constant shortage of chips disrupted the automotive and electronics industries, forcing some companies to reduce production.
Both chambers have passed similar bills, but key differences need to be resolved.
The Senate Act, passed in June 2021, includes $ 52 billion in chip subsidies and allows another $ 200 billion to stimulate scientific and technological innovation in the United States to compete with China.
The House of Representatives version, passed in February, is nearly 3,000 pages long and includes several commercial proposals that are not in the Senate bill. Some House regulations are likely to be repealed due to a lack of Senate approval, officials said.
Democrats have warned that significant investment in new chip production in the United States could be jeopardized without action by Congress. Democrat Sen. Mark Warner told Reuters last week that the clock was ticking.
Michigan Gretchen Whitmer and Indiana Gov. Eric Holcomb told the Indianapolis Business Journal in a joint statement that the two governors “for the most part agree that federal action is crucial not only to tackling semiconductor shortages. which we all face, but also to transform national research and economic development priorities and to surpass our opponents ”.