US Senate votes to advance legislation on semiconductor chips

This week, the US Senate voted to advance the legislation to address semiconductor chips. The move to advance the legislation comes as part of efforts by Washington to counter China’s growing influence.

The Senate on Tuesday voted to advance watered-down legislation that would provide billions in incentives and tax credits for the country’s semiconductor industry in an effort to ease the shortage of semiconductor chips that has disrupted production in several industries.

The votes to advance were 64 to 34, which would allow for possible votes to pass the bill in the Senate and the House of Representatives by the end of next week.

The legislation is also part of the US efforts to push back against China’s growing influence and ease supply chain problems. In this case, the bill would reduce the country’s dependence on foreign-made semiconductor chips.

The final draft of the bill has yet to be published ahead of the procedural vote. However, Senate aides said the legislation includes $54 billion in subsidies for US semiconductor companies and a new, four-year 25 percent to encourage companies to build plants in the country. The tax credit is estimated to be around $24 billion.

Officials from the Biden administration have urged Congress to take up the legislation on semiconductor chips before the August recess as it would create and preserve jobs as well as boost national security. Semiconductor chip companies have also pushed for action to be taken.

Back in June last year, the Senate approved a bipartisan $250 billion bill that would increase spending for technology research and development.

A bipartisan group of Senators also introduced two bills Wednesday that would reform election laws, in an effort to prevent a repeat of the attempts by former President Donald Trump to overturn the 2020 elections, which Trump still continues to attempt to this day.

West Virginia Democrat Joe Manchin and Maine Republican Susan Collins introduced the bill.

The legislation would make clear that the vice president, who is also the Senate president, only has a ceremonial role in the formal counting of electoral votes by Congress that would further certify a candidate’s election victory.

The legislation follows the revelations made by the January 6 Panel in its televised hearings about the plans to overturn the 2020 elections.