2022: Fitzpatrick Voted To Provide $52.7 Billion Over Five Years For
Semiconductor Industry Research And Development. In July 2022,
according to Congressional Quarterly, Fitzpatrick voted to concur with
the Senate amendment to the Chips and Science Act, which would "provide
$54.2 billion in supplemental appropriations for semiconductor research
and manufacturing and 5G network deployment and authorize federal
investment in a wide range of scientific research and development
programs over five years. [...] The bill would provide $52.7 billion
in supplemental appropriations over five years to incentivize research,
development and workforce development related to the production of
semiconductors, including $50 billion through fiscal 2026 for an
existing Commerce Department semiconductor incentive initiative to
support semiconductor manufacturing, research and development; $2
billion for national defense and intelligence activities; $500 million
for international communications technology and semiconductor supply
chain security; and $200 million for semiconductor workforce
development." The vote was on a motion to concur. The House concurred
with the Senate by a vote of 243-187, thus the bill was sent to the
President. [House Vote 404,
7/28/22; Congressional
Quarterly, 7/28/22;
Congressional Actions, H.R.
4346]
Within The Funds To The Semiconductor Industry, The Bill Reserved
$50 Billion For A Commerce Department Incentive Initiative, $2
Billion For Intelligence And National Defense, $200 Million For
International Communications And Supply Chain Security, And $200
Million For Semiconductor Workforce Development. According to
Congressional Quarterly, "The bill would provide $52.7 billion in
supplemental appropriations over five years to incentivize research,
development and workforce development related to the production of
semiconductors, including $50 billion through fiscal 2026 for an
existing Commerce Department semiconductor incentive initiative to
support semiconductor manufacturing, research and development; $2
billion for national defense and intelligence activities; $500
million for international communications technology and
semiconductor supply chain security; and $200 million for
semiconductor workforce development." [Congressional Quarterly,
7/28/22]
Within The Funds To The Semiconductor Industry, The Bill
Authorized A 25% Investment Tax Credit For Semiconductor
Manufacturing Facility Spending. According to Congressional
Quarterly, "It would also authorize a 25 percent investment tax
credit for spending on semiconductor manufacturing facilities."
[Congressional Quarterly,
7/28/22]
The Bill Provided A $52 Billion Incentive To Domestic
Semiconductor Plants To Make The Chips, Which Are Used In Vehicles,
Phones, Medical Equipment And Defense Weapons, After The COVID-19
Pandemic Caused A Chips Shortage That Led To Price Increases And
Supply Chain Issues. According to The Washington Post, "About $52
billion will go to microchip manufacturers to incentivize
construction of domestic semiconductor fabrication plants --- or
'fabs' --- to make the chips, which are used in a wide variety of
products, including motor vehicles, cellphones, medical equipment
and military weapons. A shortage of semiconductor chips during the
coronavirus pandemic has caused price hikes and supply-chain
disruptions in several industries." [The Washington Post,
7/28/22]
According To Commerce Secretary Raimondo, The U.S. Used To
Manufacture 40% Of The World's Chip Supply, But Now Only
Manufactures 12% And "Essentially" None Of The Leading Chips, Which
Mainly Come From Taiwan Now. According to The Washington Post, "In
a White House meeting with business and labor leaders Monday,
Raimondo noted that the United States used to make 40 percent of the
world's chips but now makes about 12 percent --- and 'essentially
none of the leading-edge chips,' which come almost entirely from
Taiwan." [The Washington Post,
7/28/22]
According To Commerce Secretary Raimondo, The U.S. Has Not
Sufficiently Invested In The Semiconductor Industry, While China Has
Invested $150 Billion To Build Their Own Domestic Supply.
According to The Washington Post, "The United States has invested
'nearly nothing' in semiconductor manufacturing, while China has
invested $150 billion to build its domestic capacity, Raimondo
said. She also said it was critical for the United States to be able
to compete with countries that have been providing subsidies to
semiconductor companies to build factories." [The Washington Post,
7/28/22]
The Bill Prohibited Companies That Would Receive The Semiconductor
Federal Subsidies From Building New Manufacturing Facilities In
China Or "Any Other Foreign Country Of Concern" For A Decade.
According to The Washington Post, "Included in the legislation are
provisions that would prohibit companies from building most types of
new semiconductor manufacturing facilities in China 'or any other
foreign country of concern' for a decade after receiving federal
funding." [The Washington Post,
7/28/22]
The Bill In Its Entirety Provided $280 Billion To Subsidize
Domestic Semiconductor Manufacturing And Invest In Science And
Technology Innovation, All In An Effort To Advance U.S. Competitive
And Self-Dependency. According to The Washington Post, "The House
on Thursday voted to pass the $280 billion Chips and Science Act, a
bill that would subsidize domestic semiconductor manufacturing and
invest billions in science and technology innovation, in a bid to
strengthen the United States' competitiveness and self-reliance in
what is seen as a keystone industry for economic and national
security." [The Washington Post,
7/28/22]
House Republican Leadership Argued The Bill Granted "Enormous
Subsidies And Tax Credits" To A Lone Industry That Did Not Need
"Government Handouts." According to the Associated Press,
"Republicans argued the government should not spend billions to
subsidize the semiconductor industry and GOP leadership in the House
recommended a vote against the bill, telling members the plan would
provide enormous subsidies and tax credits 'to a specific industry
that does not need additional government handouts.'" [Associated
Press,
7/29/22]
Some Republicans Viewed The Subsidies As Essential For National
Security, Ensuring That The U.S. Becomes Self-Reliant And Not
Reliant On Taiwan For Advanced Chips, Which Could Jeopardize
National Security If China Were To Try To Take Over Taiwan.
According to the Associated Press, "Some Republicans viewed passing
the legislation as important for national security. Rep. Michael
McCaul, the top Republican on the House Foreign Affairs Committee,
said it was critical to protect semiconductor capacity in the U.S.
and that the country was too reliant on Taiwan for the most advanced
chips. That could prove to be a major vulnerability should China try
to take over the self-governing island that Beijing views as a
breakaway province." [Associated Press,
7/29/22]
The Bill Provided Over $52 Billion In Grants And Incentives To
The Industry And A 25% Tax Credit To Companies That Invest In
Semiconductor Facilities In The U.S. According to the Associated
Press, "The bill provides more than $52 billion in grants and other
incentives for the semiconductor industry as well as a 25% tax
credit for those companies that invest in chip plants in the U.S."
[Associated Press,
7/29/22]
Some Republicans Scrutinized The Bill For Not Being Tough Enough
On China, Claiming That The Bill Would Not Address China's Threat On
Domestic Supply Chain Issues. According to the Associated Press,
"Some Republicans criticized the bill as not tough enough on China,
and GOP leaders emphasized that point in recommending a 'no' vote.
Their guidance acknowledged the threat China poses to supply chains
in the U.S., but said the package 'will not effectively address that
important challenge.'" [Associated Press,
7/29/22]
2022: Fitzpatrick Effectively Voted Against The Semiconductor
Incentives And Science Innovation Package. In July 2022, according to
Congressional Quarterly, Fitzpatrick voted against the "adoption of the
rule (H Res 1289) that would provide for House floor consideration of
the Senate amendment to the semiconductor incentives and science package
(HR 4346). The rule would provide for up to one hour of general debate
on HR 4346." The vote was on the adoption of the rule. The House adopted
the rule by a vote of 216-208. [House Vote 403,
7/28/22; Congressional
Quarterly, 7/28/22;
Congressional Actions, H.R.
4346;
Congressional Actions, H.Res.
1289]
2022: Fitzpatrick Effectively Voted Against The Semiconductor
Incentives And Science Innovation Package. In July 2022, according to
Congressional Quarterly, Fitzpatrick voted against the "motion to order
the previous question (thus ending debate and possibility of amendment)
on the rule (H Res 1289) that would provide for House floor
consideration of the Senate amendment to the semiconductor incentives
and science package (HR 4346). The rule would provide for up to one hour
of general debate on HR 4346. It would also provide for standard recess
authorities and procedures from Aug. 1 through Sept. 12, 2022, during
the planned August recess." The vote was on a motion to order the
previous question. The House agreed to the motion by a vote of 218-208.
[House Vote 402,
7/28/22; Congressional
Quarterly, 7/28/22;
Congressional Actions, H.R.
4346;
Congressional Actions, H.Res.
1289]