US House Bill on Chip Investment, China Competitiveness Coming Soon: Nancy Pelosi

Deepak Gupta
Deepak Gupta January 22, 2022
Updated 2022/01/22 at 7:34 AM

The U.S. House of Representatives will soon introduce a bill to boost U.S. competitiveness with China and boost federal spending on semiconductors, Speaker of the House Nancy Pelosi said Friday, as the Biden administration seeks to boost production. chip house.

“The House will soon introduce its Competitiveness Bill,” she said in a note to fellow Democrats.

The announcement came just hours after Intel said it would invest more than $20 billion (approximately Rs. 1,48,800 crore) in two new chip factories in Ohio in a massive manufacturing project that could benefit from federal funding in the coming years. years old.

President Joe Biden’s administration is pushing to persuade Congress to pass funding to help boost US chip production, as shortages of key components used in automobiles and computers have exacerbated supply chain bottlenecks.

“I want to see Congress pass this bill immediately and put it on my table,” Biden said. “We will do this for the sake of our economic competitiveness and our national security.”

The Senate passed the US Innovation and Competition Act last year, which includes $52 billion (approximately INR 3,86,985 crore) to increase semiconductor production in the US and authorizes $190 (approximately INR 14,13,984 crore) billion to strengthen US technology and research to compete with China.

“House legislation will increase our investment in chips, strengthen our supply chain and transform our research capability, in addition to many other important provisions,” Pelosi said in a letter to fellow Democrats.

Earlier this week, Biden said that rising inflation is “all about the supply chain” and that the United States has the ability to become self-sufficient in the computer chips needed to make cars.

The administration has made efforts to alleviate the chip shortage, including meetings with industry executives and allies to discuss the issue and initiating a Commerce Department study to identify bottlenecks and other problems.

Biden praised Intel’s investment Friday at a White House event with the chip company’s CEO, Pat Gelsinger, and defended Congress’ action.

Gelsinger said in an interview with Reuters ahead of the White House press conference that without government funding “we are still going to start the Ohio site. It’s just not going to happen that fast and it’s not going to grow that fast.”

Intel’s initial investment of $20 billion (approximately Rs. 1,48,800 crore) – the largest in Ohio’s history – in a 1,000-acre site in New Albany will generate 3,000 jobs, Gelsinger said. This could grow to $100 billion, around Rs. 7,44,200 crore) with eight factories total and is the biggest investment in Ohio’s history, he told Reuters.
© Thomson Reuters 2021

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *