China Competition Bill – CEOs Plea
China Competition Bill, SAN FRANCISCO/WASHINGTON, June 15 – Alphabet Inc (GOOGL.O), Amazon Inc (AMZN.O), and Microsoft Corp (MSFT.O) executives called on Congress on Wednesday to adopt the China competition bill, a legislation targeted at increasing the United States’ economic competitiveness against China, particularly in chip production.
These executives, along with more than 100 others, signed a letter encouraging the United States House of Representatives and Senate, which each enacted different versions of the law, to achieve an agreement and deliver a measure to President Joe Biden for signature. Legislators will take a summer holiday in August, after which most analysts expect politicians to turn their attention to this fall’s midterm elections.
“Our global competitors are investing in their industries, employees, and economies, and it is critical that Congress act to improve US competitiveness,” the letter stated.
The Semiconductor Industry Association (SIA), which organized the letter signing, stated that the letter represented the most significant number of corporate leaders to approve the bill to date.
The Act includes $52 billion in federal financing to enhance semiconductor production capacity in the United States, which occurs in facilities known as “fabs,” short for fabrication plants.
“Our industry’s leaders are under pressure to get fabs up and running to meet the increased demand for chips.” “And they can’t wait,” said SIA CEO John Neuffer, adding that the law will “guarantee that more of those fabs are created in the United States rather than offshore.”
In the competitiveness legislation, the SIA also advocates for an investment tax credit for semiconductor manufacture and design.
Democratic House Majority Leader Steny Hoyer said he believed lawmakers could finish the bill before the end of the month. He also stated that Republican Senate Minority Leader Mitch McConnell informed him that “he will not do anything to impede or undermine consideration of this bill.”