By David Shepardson

WASHINGTON (Reuters). – The U.S. Senate Democratic Leader Chuck Schumer plans to attach a measure that will increase the U.S.’s competitiveness with China as part of a huge defense policy bill. However, Congress has thrown new challenges at him.

In June, the U.S. Senate passed the U.S. The U.S. Innovation and Competition Act was passed by the Senate in June. It includes $52 million to increase U.S. chip production and $190 billion for research and development. The bill was never voted on by the House of Representatives. Supporters have worked for many months trying to get the bill passed and signed into law.

Schumer stated Tuesday that he hopes USICA will be included in the Annual National Defense Authorization Act, (NDAA), which will be presented to the Senate on Wednesday.

“The chip shortage is not some abstract issue – it’s impacting the daily lives of Americans,” Schumer said. Chips are required for appliances such as refrigerators, cars and kitchens. Americans have to wait long for essentials because of shortages in supply.

However, Senator Bernie Sanders who is a member of the Democratic caucus, criticized Tuesday’s chips proposal. He called it “corporate welfare” and said that the plan was only for the benefit of a few very profitable microchip businesses.

Steny Hoyer, House Majority Leader, stated Tuesday that he believes the House should first pass its version of USICA. “Then we can have a conferment with the Senate.”

Senator Mark Kelly is also a Democrat and noted how the United States relies heavily on imported semiconductors. Kelly stated that “This plan was abandoned.” Kelly stated, “There’s no time left to waste on it.”

Every vote of the Democratic Party is crucial in a evenly divided Senate.

When the Senate approves their version of the NDAA, Senate negotiators and House negotiators can work together to reach a compromise.

Gina Raimondo (US Commerce Secretary) told Reuters that USICA approval was being sought by the administration in an interview. It must happen before the end of 2012. It’s essential,” Raimondo said.