The Biden administration and chipmaking CEOs have been lobbying Congress for months to approve the CHIPS Act, which would give billions of dollars to the Semiconductor industry. The act includes subsidies for chipmakers and incentives for scientific research and development to bolster the U.S.
The Chips Act was expected to pass the U.S. House of Representatives before Congressional Democrats changed their minds. Shortly after the Senate passed the Chips Act, Senator Joe Manchin (D-W.Va.) revealed his support for a separate spending package that revives elements of President Biden's "build back better" agenda. The comprehensive spending package seemed to be dead without the support of the Senate Republicans. House Republicans may be urged to vote against the Chips Act in order to retaliate against Nancy Pelosi and the Democrats who passed the bill.
The funding was supposed to be approved before Congress went on a break. Semiconductor manufacturers like Intel Corporation, Taiwan Semiconductor Manufacturing Corporation, and GlobalWafers have pledged billions of dollars in U.S. based projects but say the investments are contingent on getting US government money
The Senate voted to fund the #CHIPSAct and advance American leadership in chip manufacturing and research and development. The Philadelphia Semiconductor Index increased by 4.8% after the vote.
McConnell was one of 16 Republicans who voted in favor of the bill. Republicans who voted against the Chips Act were criticized for not doing enough to bar funding recipients from investing in China. The money was a blank check to already-profitable companies, according to Sen.
Key House Republican representatives like Michael McCaul (R-Texas) and John Katko (R-N.Y.), who serve as ranking members on the Foreign Affairs and Homeland Security subcommittees respectively, support funding the Semiconductor Manufacturing Subcommittee.
Nancy Pelosi said on Friday that they have Republican support in the House. She predicted that a vote for the bill would be bipartisan.
The announcement by Manchin may affect the Chips Act. The Senate agreed to a separate spending package that included measures on health care, climate change, and corporate tax increases. The inflation reduction act is a slimmed down version of the president's build back better agenda
The Chips Act was tied to the spending package in order to get it through the Senate. McConnell said on July 1 that there would be no Republican votes for any Senate effort towards chips or other innovation related measures. Republicans relented after Manchin said on July 15 that he did not support fellow Democrats efforts to increase taxes or pass new climate measures.
Republicans felt like they got the raw end of the deal when Manchin changed his mind on Wednesday. According to a memo seen by The Hill, House Republican leadership told their members to vote against the Chips Act in response to Manchin's announcement.
The number of Republicans who will vote for the Chips Act may be limited by that. Gina Raimondo will meet with the Congressional Progressive Caucus on Thursday in order to convince them to support the bill.
The Chips Act funding was passed by the House on a party line. Several provisions that were not included in the Senate bill were included in the America Competes Act that was passed by the House. The only Republican to vote in favor of the bill was Adam Kinzinger.
The Chips Act could be voted on by the House as soon as Thursday. The White House will sign it if it passes the House.
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