Reuters: U.S. senators may propose $52 billion semiconductor funding proposal

According to Jiwei.com, Reuters quoted sources as saying that a group of several bipartisan U.S. senators will announce a $52 billion proposal on Friday local time to significantly increase U.S. semiconductor production and research over the next five years.

Faced with rising Chinese semiconductor production and tight chip supplies that are hitting automakers and other U.S. industries, Senators Mark Kelly, John Cornyn, Mark Warner and Tom Cotton are discussing a compromise proposal that is expected to be included in a bill to fund basic and advanced technology research in the U.S. that the Senate will debate next week.

The proposal includes $49.5 billion in emergency supplemental appropriations to fund chip provisions included in this year's National Defense Authorization Act, but a separate process is needed to raise the money. The funds are expected to be included in the Senate's bill next week to spend more than $110 billion on basic and advanced technology research in the United States to counter Chinese competition.

U.S. Democratic leader Senator Chuck Schumer, who also participated in the talks, said on Thursday that the Senate will pass a bill next week that includes "investments in the U.S. semiconductor industry to ensure China pays a price for its 'predatory actions' and to promote advanced manufacturing, innovation and critical supply chains."

U.S. President Biden also called for $50 billion to boost semiconductor production and research.

Funding backers point out that in 1990, the United States had a 37% share of semiconductor and microelectronics production; today, only 12% of semiconductors are manufactured in the United States. Therefore, "the United States' economic and national security urgently requires funding to rapidly implement these critical programs. China is actively investing over $150 billion in semiconductor manufacturing to enable them to control this critical technology."

The proposal would support emergency supplemental appropriations, with $39 billion in draft funding for production and R&D incentives and $10.5 billion for programs including the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program and other R&D programs.