Semiconductors | Biden urges Congress to release $52 billion

(Washington) Joe Biden on Monday urged Congress to pass legislation “as soon as possible” that would provide $52 billion to support semiconductor manufacturing in the United States.

Posted at 6:28pm

“America invented semiconductors, but over time we moved production abroad,” the US President lamented to business and union officials.

For him, it is “imperative” for economic reasons, but also for reasons of national security, that the United States restore these electronic chips that are present in many objects of daily life.

Demand for these chips has exploded during the pandemic, leading to shortages exacerbated by factory closures in China due to a resurgence of COVID-19.

In that regard, “Congress needs to pass this legislation as soon as possible,” the Democratic president said.

It is “vital” that it be presented to the President for ratification “later this week,” added Commerce Secretary Gina Raimondo.

“America’s dependence on a small number of factories abroad is dangerous,” said National Security Advisor Jake Sullivan.

Elected Republicans and Democrats approve the outcome but have been fighting for months to agree on a final text.

In February, the Chamber approved a broader text aimed at strengthening US industry in the face of competition from Asia, particularly in the semiconductor sector.

A similar law was passed by the Senate in March. But the two assemblies of Congress did not agree on a common text.

The Senate recently started work on a text called “Chips-plus”, which is limited to the topic of semiconductors only. He completed an important procedural step last week.

Semiconductors are omnipresent in everyday life. Mainly manufactured in Asia, they are indispensable for the manufacture of cars, smartphones, medical devices and vacuum cleaners.

With the pandemic, manufacturers have seen these chip reserves melt to alarming levels. The Biden administration asserts that this shortage is directly impacting runaway inflation in the United States.

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