The Senate is poised to pass bipartisan legislation to boost domestic semiconductor chip production this week, with a final vote expected on Tuesday or Wednesday.
The yearslong effort to rebuild the nation’s chip manufacturing capacity and compete technologically with China had faced recent setbacks in Congress, but the Senate will hold a cloture vote to break the filibuster and advance the CHIPS Act early this week. Should the bill pass that hurdle, which it is expected to, it will face a final vote midweek.
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The legislation is a scaled-down version of the U.S. Innovation and Competition Act, which passed the upper chamber in June of last year with bipartisan support but stalled in the House of Representatives. The House passed its own version of the legislation, called the America COMPETES Act, back in February.
The bill’s fate was left in limbo late last month when Senate Minority Leader Mitch McConnell (R-KY) threatened to block its passage if Democrats pursued a partisan reconciliation bill. Republicans, including some co-sponsors of the chips deal, backed McConnell’s ultimatum.
Those lawmakers were able to walk back their threat, however, after Sen. Joe Manchin (D-WV) said he would not vote on a reconciliation bill that included major tax and climate provisions.
The most recent draft of the bill would provide $52 billion in grants to incentivize domestic semiconductor production in addition to a 25% investment tax credit for manufacturers, $500 million slated to be allocated toward creating an international secure communications program, and millions for worker training.
The shortage of chips has created a disruption in production for the world’s biggest consumer electronic brands throughout the pandemic, with lawmakers on both sides of the aisle sounding the alarm on the need to manufacture more in the United States.
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President Joe Biden has urged lawmakers to pass a semiconductor bill, even a pared-down one, before leaving Washington for August recess. He has said the investments would create and preserve U.S. jobs and bolster national security.
House Speaker Nancy Pelosi (D-CA) said in a letter to lawmakers on Wednesday that she was “optimistic that the House will be able to take this bill up as early as next week” and offered her support for passing the legislation. Speaking to reporters Thursday, Senate Majority Leader Chuck Schumer (D-NY) said he expected the upper chamber to pass the legislation this week.
