Senate passes bipartisan bill investing $52 billion in US semiconductor production

[BumRushDaShow]

Source: CNN

(CNN)The Senate voted Wednesday to pass a long-awaited bill aimed at boosting US semiconductor production in a bid to increase American competitiveness. t passed with broad bipartisan support, 64 to 33. he measure now goes to the House for approval before it can be sent to President Joe Biden for his expected signature.

The legislation is aimed at addressing a semiconductor chip shortage and making the US less reliant on other countries such as China for manufacturing. Supporters say the measure is important not only for US technological innovation, but for national security as well.It sets up incentives for domestic semiconductor manufacturing as well as research and development and includes more than $50 billion in funding for that aim.

It includes a number of provisions aimed at bolstering scientific research, including authorizing billions of dollars for the National Science Foundation, the Department of Commerce and the National Institute of Standards and Technology.Senate Majority Leader Chuck Schumer has praised the bill as a major bipartisan achievement and touted it as highly consequential. "It's a major step for our economic security, our national security, our supply chains and for America's future," Schumer said of the legislation in remarks on the Senate floor this week.

Schumer described the bill as "one of the most consequential bipartisan achievements of this Congress.""It will make historic investments to scientific research. It will take direct aim at our nation's chip crisis," he said.

Read more: https://www.cnn.com/2022/07/27/politics/senate-vote-chips-bill-semiconductor-manufacturing/index.html

[LonePirate]

1. The House will pass this as is, won't it?

I have not heard of any Democratic objections that would sink the bill, even though the No votes in the Senate were bipartisan. I don’t expect many House Repubs to vote for it. Hopefully none of them are needed in order to pass it.

[jimfields33]

4. I think with 17 republican votes in the senate.

I believe there will be some republicans who vote for it in the house.

[DemSigns]

2. That should fund a lot of stock buy backs.

[BumRushDaShow]

3. If they are funding the NSF as the OP is noting

then that type of effort would be in the form of grants to startups (not the giganto companies like Intel) to perhaps innovate something.

What eventually DOES happen down the road, is that the bigger companies BUY the little ones to get that tech. But that takes a bit of time.

[SmittyWerben]

5. According to an article by the Washington Post

there are provisions in the bill to prevent stock buy backs using these funds.

[TiberiusB]

6. If any Republicans are for it...

..then suspicion is warranted.

Both this bill and the infrastructure bill have been rightly criticized for throwing billions in tax payer subsidized welfare at wealthy corporations. There is no other way to explain the cooperation of just enough Republicans and the corporate "centrist" Democrats to ensure passage through the Senate.

Or do people really think that those groups have suddenly seen the light and are willing to buck the GOP or their donors to selflessly help the public?

The pork must be strong with this one.

https://www.theguardian.com/commentisfree/2022/jun/26/us-chips-act-intel-robert-reich

oh, and "historic" is BS politics babble 101. Here's hoping it actually does some good.

[oldsoftie]

7. Who else is going to make billions of semiconductors but a BIG company?

It requires massive sterile facilities that small companies just can't provide
If the "pork" was strong we'd already be hearing about it.

We MUST get critical stuff away from China dependence. Its a national security issue. I'm not gong to hem & haw over who gets what if it gets them OUT of china.

[TiberiusB]

12. Except these corportate giants are already massively profitable.

This is like when sports teams hold cities hostage for free stadiums and other perks.

These big companies have been outsourcing for decades. It's not like they have the facilities here and were just waiting for the desperately needed cash to get going. The point Robert Reich, you know the guy who gets quoted on this board all the time until it isn't convenient, and Bernie Sanders have raised alarms that there is nothing to stop Intel or any of the other recipients from using funds to do stock buy backs or bolster lobbying. Nor is there any language in the bill to prevent them from continuing to offshore jobs or suppress unionization efforts.

I don't disagree with the need for domestic production on any number of goods, but throwing money at these companies without strict oversight seems like an open invitation to abuse.

[oldsoftie]

15. I'm told that there ARE restrictions preventing them from stock buybacks.

I think others on this thread have stated that is the case. (Edit: I just looked; see post #5)
IMO, we should simply make it a LAW that critical & national security items can NOT be sourced from China. Either HERE or a VERY friendly country. Not sure if that would be legal, but if it is then just do THAT

[BumRushDaShow]

9. "cooperation of just enough Republicans and the corporate "centrist" Democrats to ensure passage"

You do realize that ALL Democrats (save Tammy Duckworth who did not vote) and ONE Independent (Angus King) voted for it and the one other Independent - Bernie Sanders, voted against it.

What they voted for was to providing FUNDING (appropriations) for various initiatives including "CHIPS Plus".

Semiconductor, science bill passes Senate, heads to House

By Laura Weiss and Lindsey McPherson
Posted July 27, 2022 at 1:13pm

(snip)

Seventeen Republicans joined Democrats in voting for the chips and science package. The only member of the Democratic caucus to vote against it was Sen. Bernie Sanders, I-Vt., who long opposed the legislation as a “blank check” for profitable computer chip companies like Intel Corp. and Micron Technology.

(snip)

https://rollcall.com/2022/07/27/semiconductor-science-bill-passes-senate-heads-to-house/

H.R.4346 - Supreme Court Security Funding Act of 2022 (includes "CHIPS Plus" funding)

NAYs ---32

Barrasso (R-WY)
Blackburn (R-TN)
Boozman (R-AR)
Braun (R-IN)
Cotton (R-AR)
Cramer (R-ND)
Crapo (R-ID)
Cruz (R-TX)
Daines (R-MT)
Ernst (R-IA)
Fischer (R-NE)
Grassley (R-IA)
Hoeven (R-ND)
Hyde-Smith (R-MS)
Inhofe (R-OK)
Johnson (R-WI)
Kennedy (R-LA)
Lankford (R-OK)
Lee (R-UT)
Lummis (R-WY)
Marshall (R-KS)
Paul (R-KY)
Risch (R-ID)
Rounds (R-SD)
Rubio (R-FL)
Sanders (I-VT)
Scott (R-FL)
Scott (R-SC)
Shelby (R-AL)
Thune (R-SD)
Toomey (R-PA)
Tuberville (R-AL)

https://www.senate.gov/legislative/LIS/roll_call_votes/vote1172/vote_117_2_00269.htm

Here is a list of the most "liberal/progressive" Senators - https://progressivepunch.org/scores.htm?house=senate

I suppose, for example, it's "raging moderate corporatist Sherrod Brown's" fault - https://www.brown.senate.gov/newsroom/press/release/sherrod-brown-urges-passage-chips-bill-this-week

And god forbid the RADICAL corporatist Elizabeth Warren voted for it too!!

[TiberiusB]

13. Progressives compromise all the time...

sometimes party members vote with the caucus to ensure something potentially decent passes even if it means allowing some of the old grift to continue.

Perhaps this was a trade to get at least some sort of cooperation from the conservative wing of the party on other legislation, such as the drug pricing reforms.

Maybe it's to ensure there is something in the news to help generate momentum for the midterms.

It's hardly an indication that the bill is an inarguable good.

Horse trading is a thing.

[BumRushDaShow]

16. I know that

but that is not what you originally wrote.

This particular bill is actually a "funding" bill that paired with a (hopefully) soon to be voted on reconciliation package that will actually impose a 15% minimum corporate tax (along with the prescription drug negotiation provisions, directing funding to climate initiatives, etc), and that has a whole pile of things on it that was probably done to get the most "bang for the buck" in terms of agendas that Senators hold near and dear to their hearts.

Link to tweet

German Lopez
@germanrlopez
·
Follow
To summarize:
1) McConnell threatened to kill CHIPS Plus if the reconciliation bill moved forward.
2) Manchin suggested the reconciliation bill was dead.
3) CHIPS Plus passed.
4) Hours later, Manchin and Schumer announced this.

Wild stuff.
Jake Sherman
@JakeSherman
🚨MANCHIN says he’s reached agreement with Schumer on a reconciliation deal that deals with climate, energy, tax and health care.
Image
Image
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6:01 PM · Jul 27, 2022

[IronLionZion]

10. We want stuff to be made in America

Since COVID has shown serious problems in expecting to buy it from overseas.

[nycbos]

11. Indeed.

It comes to chips and semiconductors I would say that's a national security issue as well.

[TiberiusB]

14. I have no issue with that concept

It's the potential flaws in the execution I worry about.

To repeat, seeing the GOP embrace a bill, much as they did with the Infrastructure bill, with just a smattering of votes, seemingly to act as a buffer against any resistance from progressives or other groups, throws up a red flag for me.

[bucolic_frolic]

8. 33 dimwits swear the abacus is making a comeback