Senate Passes Bill to Boost Domestic High-Tech Manufacturing

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Sean Moran

The Senate on Wednesday passed legislation that aims to boost domestic production of high-tech goods to better compete with China.

The Senate voted to pass the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, a $280 billion package that would boost domestic semiconductor chip manufacturing and high-tech research.

The legislation passed 64-33, featuring strong support from Democrats as well as many Republicans.

The legislation would provide:

  • $52 billion in financial incentives to the semiconductor industry
  • $80 billion in increased funding to universities through the National Science Foundation (NSF)
  • $50 billion in funding for research at the Department of Energy (DOE)
  • $1.5 billion to spur mobile broadband development
  • The legislation also has a 25 percent investment tax credit for investments in semiconductor manufacturing

The legislation represents a divergence between Republicans, as some wanted to pass the bill to boost domestic manufacturing, while others believed it represents corporate welfare and would not do enough to boost high-tech manufacturing.

Former Secretary of State Mike Pompeo supported the legislation and has been pushing House Republicans to vote for the bill too.

In contrast, Sen. Mike Lee (R-UT) opposed the bill, saying:

“Congress must pass the CHIPS Act for both our national and economic security,” Pompeo wrote on Monday. “We have to become less dependent on China for critical technologies — and this is how we do it.”

Top Republicans supported the bill, including Rep. Michael McCaul (R-TX), the ranking member of the House Foreign Affairs Committee, Rep. Mike Turner (R-OH), the ranking member of the House Intelligence Committee, and Rep. John Katko (R-NY), the ranking member on the House Homeland Security Committee.

Some conservatives opposed the bill, including Heritage Foundation President Kevin Roberts, who said the bill serves as corporate welfare to a profitable industry and would grant billions of dollars in grants to federal agencies.

“The Chinese Communist Party represents a threat to American values, interests, and freedoms unlike any other we have faced in our history. Unfortunately, the CHIPS Act does little to counter those threats and protect our way of life,” Roberts said.

FreedomWorks President Adam Brandon said in a statement after the vote:

It’s disappointing to see Senate Republicans greenlight President Biden’s Build Back Better agenda with the passage of the CHIPS-Plus Act. All Republicans had to do here was hold the line against further spending.

Billions of dollars in reckless spending and corporate welfare, the CHIPS-Plus Act throws fuel on the fire of inflation and places the burden on American families. Make no mistake: corporate welfare does not make America more competitive. It only increases government dependence.

Oren Cass, the executive director at the American Compass, said America needs “significant public spending” to better compete in advanced semiconductor manufacturing against Taiwan, South Korea, and China.

 The bill will go to the House, where it will likely pass, and go to President Joe Biden’s desk to sign.

Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.

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