By David Shepardson

WASHINGTON (Reuters), a bipartisan group representing more than 140 U.S. senators urged Congress members to approve $52 Billion in subsidies for the production and research of semiconductor chips.

A bill to improve American competitiveness against China was passed by the U.S. House of Representatives in a narrow vote on February 4. It includes $52 million for semiconductor manufacturing.

The funding will “help prevent future shortages that cause GDP drag, job losses, more expensive consumer goods, and national security vulnerabilities,” said a letter https://matsui.house.gov/sites/evo-subsites/matsui.house.gov/files/evo-media-document/20220308%20-%20CHIPS%20letter_0.pdf signed by lawmakers, including Representative Doris Matsui and Senator Mark Warner, both Democrats, and Republican Representative Michael McCaul and Senator John Cornyn.

These lawmakers asked Speaker Nancy Pelosi to urge Majority Leader Chuck Schumer, Minority leader Mitch McConnell, and House Minority Lead Kevin McCarthy to “immediately start negotiations to allow votes for the House and Senate”

Joe Biden, President of the United States, will hold a conference on semiconductor chips Wednesday in order to speak with business leaders. He also plans to press for rapid passage.

22 governors pushed for swift action in November on funding chips.

An industry-wide shortage in chips caused disruptions to production, causing some companies to reduce production.

The Senate approved its June bill with a vote of 68-32. This includes $52Billion in chips, and authorizations for $190B for U.S. technology research and development to be competitive with China.

This funding provides $2 billion for incentives to produce “mature node”, semiconductors that are used in the automotive industry, medical devices and certain national defense applications.

The bills have key differences in China provisions.

House Bill consists of a variety of trade provisions. It would place additional sanctions against China regarding its treatment Uyghurs, and provide refugee status to qualifying Hong Kongers.

This House bill reauthorizes Trade Adjustment Assistance programs and reforms Generalized System of Preferences. These are preferential tariff systems for imports.