Biden to hold virtual meeting with CEOs on chips legislation
2022.07.25 19:50
FILE PHOTO: U.S. President Joe Biden delivers remarks on climate change and renewable energy at the site of the former Brayton Point Power Station in Somerset, Massachusetts, U.S. July 20, 2022. REUTERS/Jonathan Ernst/File Photo
By David Shepardson
WASHINGTON (Reuters) -President Joe Biden will meet virtually on Monday with the chief executives of Lockheed Martin Corp (NYSE:LMT), Medtronic (NYSE:MDT) PLC and Cummins Inc (NYSE:CMI) along with labor leaders as part of the administration’s push for legislation to boost the U.S. semiconductor industry, a White House official told Reuters.
The presidents of the Communication Workers of America and United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada will also take part as will a number of White House and cabinet officials including Commerce Secretary Gina Raimondo.
On Tuesday, the Senate backed by 64 to 34 a procedural measure on a slimmed-down version of legislation to provide tens of billions of dollars in subsidies and tax credits for the semiconductor industry.
The Senate is set to hold another procedural vote on the measure later on Monday, and House Speaker Nancy Pelosi said on Friday final action could take place as soon as later this week.
The bill aims to ease a shortage that has disrupted production in industries from automobiles to electronics and high-tech weapons.
It is part of a broad effort across the government to push back against an ascendant China and ease supply-chain problems by decreasing U.S. companies’ reliance on foreign-made semiconductors.
The bill includes about $52 billion in subsidies for U.S. semiconductor production, as well as a new, four-year 25% tax credit to encourage companies to build U.S. semiconductor plants. The tax credit is estimated to be worth about $24 billion. There are other provisions, including a $1 billion grant program for “persistently distressed communities.”
The Senate approved a bipartisan $250 billion bill boosting spending on technology research and development in June 2021, while the House passed its own version in February.
