Democratic majority leader in the U.S. Senate, Senator Chuck Schumer, announced on Wednesday that the Senate may approve a plan starting this week aimed at accelerating semiconductor production in the United States to address the global shortage of these essential components. More broadly, the plan seeks to support American industry in the trade war with China. Schumer told reporters, "I don’t see why this bill wouldn’t be adopted by the end of the week. That is my wish."
The bill specifically allocates $52 billion over five years to encourage companies to manufacture semiconductors in the United States and to enhance research and development in this area. It also includes $1.5 billion for developing the fifth-generation network, one of the main areas of tension between China and the United States.
If the plan is approved in the Senate, it must then go to a vote in the House of Representatives before final adoption. According to Schumer, the plan has support from both Democrats and Republicans and will "boost American innovation and maintain our competitive edge not just for the next few years, but for generations to come." The Democratic senator emphasized that passing this plan would be "one of the most important things this council has accomplished in a very long time."
American lawmakers aim to counter particularly against China, with which they are engaged in a trade war that began during the presidency of Republican Donald Trump and continued under his Democratic successor, marking one of the few areas where Biden has followed his predecessor’s path. Additionally, Beijing is accused by Washington of spying on American industry and threatening the national security of the United States.
For several months, the global semiconductor shortage, primarily manufactured in Asia, has affected numerous industries reliant on these components, particularly the automotive industry and communication equipment, including smartphones, computers, and video games. The Biden administration has been exploring ways to boost the production of a range of industrial components within the United States to reduce national companies' dependence on foreign suppliers.
In February, Biden issued an executive order requiring federal agencies to study this issue within 100 days. Semiconductors include materials like silicon, and electronic components made from them, such as chips that enable electronic devices to capture, process, and store data. These components are fundamental to entire sectors of the global industry and are found in many tools that we use daily, including electronic and connected devices, such as smartphones, computers, video game consoles, cars—especially their control panels, aircraft, and telecommunications and information networks.
