Congress nominates legislators to issue an agreement regarding the funding of semiconductor chips

Semiconductor chips are seen on a circuit board of a computer in this illustration image taken February 25, 2022. REUTERS / Florence Lo / Illustration

WASHINGTON, April 7 (Reuters) – U.S. House and Senate lawmakers on Thursday said they had chosen negotiations to rule out a deal over a bill to provide $ 52 billion in government subsidies for semiconductor production after months of discussion.

House Speaker Nancy Pelosi, a Democrat, and Republican House leader Kevin McCarthy have named about 80 House lawmakers, including states and top Republicans on several key committees involved in a process known as the “Conference Committee” for a compromise version. ‘reach.

The Senate first passed chip legislation in June, which also authorized $ 190 billion to strengthen U.S. technology and research to compete with China, while the House passed its version in early February, which passed various provisions. to strengthen competition with China.

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A persistent industrial-wide chip shortage has disrupted production in the automotive and electronics industries, forcing some companies to reduce production.

There are growing calls for other countries to reduce confidence in semiconductors and the White House says funding is an urgent national security concern to ensure a long-term U.S. supply of chips.

In 1990, the United States produced 37% of all chips, while today it accounts for only 12% of global production.

Senate Majority Leader Chuck Schumer, a Democrat, and Republican Leader Mitch McConnell said Thursday that they will both call for 13 negotiations.

“The Senate must now restore a product that reflects what is happening to this House with bipartisan support,” McConnell said. “Without major concessions and changes by the House Democrats, this legislation has no chance of becoming law.”

The House bill contains some trade provisions and would authorize $ 8 billion in contributions to the Green Climate Fund, established by the Paris Agreement to Combat Climate Change.

Schumer said the negotiations would ensure that “the Senate-approved bill stays on track to create better-paying jobs, boost home production, and stimulate the American invention.”

On Wednesday, the White House held a briefing with lawmakers to discuss the “escalating vulnerabilities” to the U.S. chip supply chain economy. read more

Commerce Secretary Gina Raimando said the administration would work to help legislators reach consensus, saying the legislation “brings home production jobs, secures our supply chains, and helps America remain globally competitive.”

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Report by David Shepardson

Edited by Chris Reese, Bernard Orr