Biden Meets With CEOs And Workers; Supports Bill To Boost US Chip Production 2022

Joe Biden almost met with CEOs as part of the administration’s efforts to pass legislation to boost the US semiconductor industry.

Washington: President Joe Biden was set to meet with the chief executives of Lockheed Martin Corp, Medtronic PLC, and Cummins Inc along with business leaders on Monday as part of the administration’s push for legislation to boost the US semiconductor industry.

“Congress should pass this bill as quickly as possible,” Biden said. “There is an economic need … this bill will intensify the efforts of the semiconductor industry.”

Senate Majority Leader Chuck Schumer said he will delay the procedural vote due to severe weather until Tuesday at 11 a.m. ET

The bill includes about $52 billion in subsidies for US semiconductor production, plus a new four-year 25% tax credit to encourage companies to build semiconductor plants in the US. The tax credit is estimated to be around $24 billion. Other appropriations include a $1 billion grant program for “persistently distressed communities.”

Last week, the Senate voted 64 to 34 measures on a watered-down version of the legislation.

James Ticklett, CEO of Lockheed Martin, told Biden that a robust supply of chips “is essential to the national security and health of the defense industrial base and the aviation industry as a whole.”

The bill is intended to ease shortages that have disrupted production in industries including automobiles, consumer electronics, medical equipment, and high-tech weapons.

“This is about investing in America,” said Commerce Secretary Gina Raimondo, who attended the event. “The United States has become completely dependent on China, especially for chips used in aircraft, medical devices, and industrial machinery.

It’s part of a broad government-wide effort to counter China’s rise and ease supply chain problems by reducing U.S. companies’ reliance on foreign-made semiconductors.

Senator Bernie Sanders has criticized the legislation, calling it a “blank check” for the “highly profitable” chip industry that has been receiving money from the government to replace US factories that have been shuttered for the past 20 years.

Biden rejected criticism that the legislation was a gift to big business, saying trade could recover funds from companies that fail to meet their obligations.

In June 2021, the Senate passed a bipartisan $250 billion bill to boost spending on technology research and development. The House approved its own version in February.

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