2022: Schweikert Voted Against Providing $52.7 Billion Over Five Years For Semiconductor Industry Research And Development. In July 2022, according to Congressional Quarterly, Schweikert voted against concurring 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: Schweikert Effectively Voted Against The Semiconductor Incentives And Science Innovation Package. In July 2022, according to Congressional Quarterly, Schweikert 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: Schweikert Effectively Voted Against The Semiconductor Incentives And Science Innovation Package. In July 2022, according to Congressional Quarterly, Schweikert 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]