Democrats have said they are optimistic that a bipartisan deal will be struck in July to implement a sweeping $52 billion plan to boost US semiconductor production.
After the Chips Act of the European Union (EU) presented at the beginning of the year, the United States should soon adopt a similar text. Indeed, Democrats have said they are optimistic about reaching a bipartisan deal to implement a sweeping $52 billion plan to boost US semiconductor production.
The country of Uncle Sam has seen its weight in the sector drop by 25% over the past 30 years, to now represent only 12% of world production in a market that should double by 2030. and weigh 1000 billion dollars. Currently, Asia alone accounts for 80% of world production.
To advance discussions, House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer, both Democrats, met with House and Senate Republican Minority Leaders Kevin McCarthy and Mitch McConnell, to try to find a compromise. However, no agreement has emerged so far.
A $52 billion plan
Nevertheless, optimism is in order. Nancy Pelosi and Chuck Schumer have issued a statement in which they call for rapid action and believe that there is no reason for the bill not to be passed by Congress in July. “Democrats have already made accommodations in the name of getting a deal done. […] we are optimistic that he will intervene soon”the two Democratic officials said.
This $52 billion envelope for the production of electronic components is part of the US Innovation and Competition Act (USICA), a bill that aims to stimulate scientific innovation in the United States in the face of technological power. Chinese. The text was adopted by the Senate in June 2021, before the House of Representatives adopted its version last February. It therefore remains to harmonize the texts between the two chambers. Because if they have adopted similar bills, essential differences still have to be overcome.
Biden has triggered the dynamic
Because time is running out, at a time when the global shortage of semiconductors is dragging on. Moreover, the rhythm of the American Congress contrasts with the measures adopted by Joe Biden immediately after his arrival at the White House. Barely sworn in as President of the United States, Barack Obama’s former right-hand man signed an executive order imposing a 100-day review of supply chains in the microchip industry. In the process, the American president had proposed an envelope of 50 billion dollars to make the sector more competitive and limit the risks of a new shortage of electronic components.
“To balance the global supply chain and not go through this situation again, I think it’s a good thing to see states stepping up. For now, the EU is ahead of us with its Chips Act, and I encourage the US government to take the same path.”said Don McGuire, chief marketing officer of Qualcomm, to the Digital on the occasion of the VivaTech exhibition. He is about to be heard.