Exclusive: U.S. senators close to announcing $52 billion chips funding deal - sources

Exclusive: U.S. senators expected to announce $52 billion chips funding deal - sources
Exclusive: U.S. senators expected to announce $52 billion chips funding deal - sources   -   Copyright  (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html   -  
By Reuters

<p><body> <p>By David Shepardson and Michael Martina</p> <p><span class="caps">WASHINGTON</span> (Reuters) – A group of U.S. senators are close to unveiling a $52-billion proposal Friday that would significantly boost U.S. semiconductor chip production and research over five years sources briefed on the matter said.</p> <p>Senators Mark Kelly, John Cornyn, Mark Warner and Tom Cotton have been negotiating a compromise measure to address the issue in the face of rising Chinese semiconductor production and shortages impacting automakers and other U.S. industries.</p> <p>A spokesman for Cornyn said the senator has “not signed on to a semiconductor amendment.” </p> <p>Sources said there remains at least one sticking point over whether to include a provision on labor rates.</p> <p>The chips funding is expected to be included in a bill the Senate will take up next week to spend more than $110 billion on basic U.S. and advanced technology research to better compete with China.</p> <p>The proposal includes $49.5 billion in emergency supplemental appropriations to fund the chip provisions that were included in this year’s National Defense Authorization Act, but which require a separate process to garner funding, according to a draft summary seen by Reuters.</p> <p>Democratic Leader Senator Chuck Schumer, also involved in the talks, said Thursday the Senate will take up the technology bill known as the Endless Frontier Act next week in a package of legislation that would include efforts to “invest in the American semiconductor industry, ensure that China pays a price for its predatory actions, and boost advanced manufacturing, innovation, and critical supply chains.”</p> <p>President Joe Biden has also called for $50 billion to boost semiconductor production and research.</p> <p>Supporters of funding note the U.S. had a 37% share of semiconductors and microelectronics production in 1990; today just 12% of semiconductors are manufactured in the United States.</p> <p>“There is an urgent need for our economic and national security to provide funding to swiftly implement these critical programs. The Chinese Communist Party is aggressively investing over $150 billion in semiconductor manufacturing so they can control this key technology,” the summary says.</p> <p>The measure would “support the rapid implementation of the semiconductor provisions” in the defense bill.</p> <p>The draft summary says it would include $39 billion in production and R&D incentives and $10.5 billion to implement programs including the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program, and other R&D programs.</p> <p/> <p> (Reporting by David Shepardson and Michael Martina; Editing by Nick Zieminski)</p> </body></p>