Congress seeks compromise to boost computer chip industry

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Congress is aiming to boost chip manufacturing and research in the United States. But Democrats and Republicans have to work out considerable differences in their two proposals.

Now they have to work out considerable differences in the two bills. And Senate Republicans are already digging in before the negotiations formally begin.

The Senate bill is projected to increase spending by about $250 billion over 10 years. The House bill would boost spending by more than $400 billion over the period.The Senate and House bills allot more than $52 billion for semiconductor production and research. Grants and loans from the federal government would subsidize some of the cost of building or renovating semiconductor plants.

The House bill provides $13.3 billion over five years to a new directorate for science and engineering solutions. It lists climate change, environmental sustainability and social and economic inequality as part of the directorate’s focus.The two bills also establish regional technology hubs — with the Senate dedicating $10 billion to the program and the House dedicating $7 billion. The Senate bill calls for 20 such hubs, while the House bill authorizes at least 10.

One of the big-ticket items is a $45 billion program in the House bill to enhance supply chains in the U.S. There was no such provision in the Senate bill. The money would provide grants, loans or loan guarantees to companies, local governments and tribes trying to build or relocate manufacturing plants producing critical goods.

“It’s not going to move without trade adjustment assistance,” Rep. Earl Blumenauer, D-Ore., said of the bill.

 

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