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posted by janrinok on Monday July 04 2022, @10:16PM   Printer-friendly
from the somebody-wants-more-bribes dept.

U.S. May Lose Silicon Wafer Factory If Congress Can't Fund CHIPS Act, Commerce Secretary Says

U.S. may lose silicon wafer factory if Congress can't fund CHIPS Act, commerce secretary says:

U.S. Commerce Secretary Gina Raimondo told CNBC's Jim Cramer on Monday that she believes GlobalWafers will follow through on its plan to build a silicon wafer factory in Texas — but only if Congress passes funding for the CHIPS for America Act by the time the August recess begins.

"This investment that they're making is contingent upon Congress passing the CHIPS Act [funding]. The CEO told me that herself, and they reiterated that today," Raimondo said in an interview on "Mad Money."

"It has to be done before they go to August recess. I don't know how to say it any more plainly. This deal ... will go away, I think, if Congress doesn't act," she added.

GlobalWafers, a Taiwan-based semiconductor silicon wafer firm, said Monday that it plans to build a facility to produce the component in Sherman, Texas. The facility could create up to 1,500 jobs and produce 1.2 million wafers a month, according to the U.S. Commerce Department.

The CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Act incentivizes investment in the U.S. semiconductor industry. While it was passed in January 2021, a funding package has not been approved by Congress.

McConnell Warns Dems of Fallout for Reviving Biden Bill

McConnell warns Dems of fallout for reviving Biden bill:

Senate Republican leader Mitch McConnell threatened Thursday to derail a bill designed to boost semiconductor manufacturing in the United States if Democrats revive their stalled climate and social policy package.

The rejuvenation of the Democratic reconciliation package, central to President Joe Biden's agenda, remains a work in progress and is far from certain. But with some signs of progress in the negotiations, McConnell is moving to complicate Democratic plans by warning that Republicans would react by stopping separate semiconductor legislation from moving over the finish line in the coming weeks, despite its bipartisan support.

"Let me be perfectly clear: there will be no bipartisan USICA as long as Democrats are pursuing a partisan reconciliation bill," McConnell tweeted, referring to the shorthand name for the computer chips bill that passed the Senate last year.

Both chambers of Congress have passed their versions of the legislation, which would include $52 billion in incentives for companies to locate chip manufacturing plants in the U.S. Lawmakers are now trying to reconcile the considerable differences between the two bills, but at a pace that has many supporters worried the job won't get done before lawmakers break for their August recess.

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  • (Score: 5, Insightful) by Mykl on Tuesday July 05 2022, @02:21AM (2 children)

    by Mykl (1112) on Tuesday July 05 2022, @02:21AM (#1258140)

    There's still no reason for the Republican's to threaten one piece of legislation if the Dems even _talk_ about another unrelated piece of legislation, other than to play games.

    The chip plant is very expensive, but is a drop in the bucket compared to Defence spending and is arguably a better return-for-dollar in terms of security interests (per my post above).

    I think you hit the nail on the head with your comment about the 'political gift for the democrats'. If doing something good for the country makes the Democrats look good, we shouldn't do it! The GOP would rather have the country burn than allow the Democrats a win. It's what Mitch did through the Obama years and is reflective of the GOP's priority - party first, country second.

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  • (Score: 0) by Anonymous Coward on Tuesday July 05 2022, @04:46AM (1 child)

    by Anonymous Coward on Tuesday July 05 2022, @04:46AM (#1258159)

    You missed the part where the republicans don't think that either is necessarily wise, and they're both stupidly expensive. It's a lose/lose/lose proposition to them. It's a political loss, it's a practical loss, and it's a fiscal loss. If someone sees something that way, why in the name of little green monkeys would they vote for it? Because Chuck Schumer asked super-duper nicely?

    Put differently, this is republicans trying to compromise: "You can have your stupidly expensive, pathetically transparent vote-buying exercise in Texas, if you'll just close the door on your insanely expensive, nationwide desperate vote-buying exercise."

    That doesn't make them evil; that makes them pragmatic.