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US House Bill to Invest in Chips and Boost China’s Competitiveness Coming Soon: Nancy Pelosi

The US House of Representatives will soon introduce a bill aimed at making the US more competitive with China and increasing federal spending on semiconductors, Speaker Nancy Pelosi said Friday as the Biden administration seeks to boost domestic chip production.

“The House will soon present its competitiveness bill,” she said in a note to fellow Democrats.

The announcement comes just hours after Intel said it would invest more than $20 billion (roughly Rs. 1,48,800 crore) in two new Ohio chip manufacturing plants as part of a massive manufacturing project that could benefit from federal funding.

The Joe Biden administration is pushing to get Congress to approve funding to help boost U.S. chip manufacturing as shortages of key components used in cars and computers have exacerbated supply chain bottlenecks.

“I want Congress to pass this bill immediately and bring it to my desk,” Biden said. “Let’s do it for the sake of our economic competitiveness and our national security.”

Last year, the Senate passed the US Innovation and Competition Act, which includes $52 billion (roughly Rs. 3,86,985 crore) to increase US semiconductor manufacturing and $190 billion (roughly Rs. 14,13,984 crore) to strengthen US technology and research to compete with China.

“House legislation will increase our investment in chips, strengthen our supply chain, and change our research capabilities, among many other key provisions,” Pelosi said in a letter to fellow Democrats.

Earlier this week, Biden said inflation was “totally linked to the supply chain” and that the United States could become independent of the computer chips needed to make cars.

The administration has made efforts to alleviate the chip shortage, including holding meetings with industry leaders and allies to discuss the topic, and initiating a Department of Commerce study to identify bottlenecks and other issues.

Biden touted Intel’s investment Friday at a White House event with chip company CEO Pat Gelsinger and argued for congressional action.

Gelsinger said in an interview with Reuters ahead of a White House press conference that without government funding, “We’re going to launch the site in Ohio anyway. It just won’t happen as fast and it won’t grow as fast.”

Intel’s initial $20 billion (roughly Rs. 1,48,800 crore) investment — the largest in Ohio history — in the 1,000-acre New Albany site will create 3,000 jobs, Gelsinger said. This could rise to $100 billion at roughly Rs. 7,44,200 crores) with eight manufacturing plants and is the largest investment in Ohio’s history, he told Reuters.
© Thomson Reuters 2021



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