The U.S. Senate advanced an amended version of the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (America COMPETES) Act last week, a month after the House advanced its own version.
The legislation will invest tens of millions of dollars in strengthening the U.S.'s domestic supply and increasing domestic manufacturing, particularly of semiconductor chips, according to a recent release from Rep. Madeleine Dean’s office. It invests in scientific and technological research to boost innovation.
“In our global economy, we need to make sure that America stays ahead of China,” Sen. Maggie Hassan (D-NH) tweeted. “Tonight we took an important step forward to invest in American manufacturing, supply chain readiness and national security.”
The legislation includes funding aimed at bolstering the resiliency of America's electrical grid, as well as advancing energy technology including solar and bioenergy, according to a release from House Leader Steny Hoyer (D-MD).
China and East Asia manufacture 75% of all semiconductors used globally, Newsweek reported. Semiconductor chips are a critical component of cars, planes, computers and mobile devices.
CEOs from Intel, Micron, PACCAR Inc. and Lam Research spoke to the U.S. Senate last month about the importance of semiconductor chips, according to a release from Sen. Maria Cantwell (D-WA).
Intel CEO Pat Gelsinger told the senators that "There is an urgent need for the federal government to incentivize more private sector investment in the United States to enable a resilient and innovative semiconductor ecosystem.”
Intel, headquartered in California, is one of the largest semiconductor manufacturers in the world. Gelsinger said that because labor practices in East Asia make the higher cost of American manufacturing “increasingly difficult to overcome,” government incentives are critical for increasing domestic manufacturing, the release said.
