U.S. Commerce Secretary: Lawmakers try to cut $52 billion in semiconductor chip manufacturing subsidies

U.S. Commerce Secretary Gina Raimondo (Gina Raimondo) said on Wednesday that lawmakers are trying to cut $52 billion (about 330 billion yuan) in subsidies for semiconductor chip manufacturing.

"Around the chip, and some of the issues around the chip, Congress can reach a consensus within this month," Raymond said.

The discussions also touch on chip-related content, including investment tax credits for semiconductor manufacturing, Raymond said, but stressed that the discussions are still at a very fluid stage. "This is already a good outcome because the worst outcome is that nothing can be done until the summer recess of Congress on August 4, which will cause irreparable damage to the U.S. economy and military operations," she said.

A persistent shortage of chips has disrupted the U.S. auto and electronics industries, forcing some companies to scale back production, and many companies believe the shortage will continue until at least the end of 2023. Lawmakers have warned that if Congress fails to act, it could hurt investment in U.S. chip production, but a chip bill has struggled over the past few months as both chambers struggle to reach a consensus.

At 4 p.m. ET on Wednesday, the Biden administration sent three senior officials to a classified briefing for the full Senate, including Commerce Secretary Gina Raimondo, Director of National Intelligence Avril Haynes and Deputy Defense Secretary Kathryn・Hicks, to advance the passage of the 330 billion yuan chip bill.

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