US Congressional Leaders Meeting on Semiconductor Chip Bill Tuesday | Investment News

WASHINGTON (Reuters) – U.S. congressional leaders sought on Tuesday to strike a $52 billion bipartisan deal to subsidize U.S. semiconductor manufacturing and boost U.S. competitiveness with Chinese technology.

House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, both Democrats, met with House Republican Leader Kevin McCarthy and Senate Republican Leader Mitch McConnell to try to find a compromise.

“We’re working on it now,” Schumer said as he walked to the meeting. A continuing shortage of chips has disrupted the automotive and electronics industries, forcing some companies to cut production.

Both houses have passed similar bills, but key differences need to be resolved.

Senate legislation, passed in June 2021, provided $52 billion for chip subsidies and authorized an additional $200 billion to spur U.S. science and technology innovation to compete with China.

The House version, passed in February, is nearly 3,000 pages long and includes a number of trade proposals not included in the Senate bill. Some House provisions will likely be deleted due to lack of Senate approval, officials say.

Democrats have warned that major investments in new US chip production could be jeopardized without congressional action. Democratic Senator Mark Warner told Reuters last week that “time is running out”.

Michigan Governor Gretchen Whitmer and Indiana Governor Eric Holcomb said in a joint opinion piece needs-to-pass-innovation-legislation-soon for the Indianapolis Business Journal that governors from both parties “overwhelmingly agree that federal action is essential not only to address the semiconductor shortage we’re facing today.” we all face, but also to realign national research and economic development priorities and outpace our adversaries”.

Punchbowl News reported the scheduled Congress meeting earlier.

(Reporting by David Shepardson; Editing by Howard Goller)

Copyright 2022 Thomson Reuters.