Reuters: US Congress selects negotiators to reach $52 billion chip subsidy agreement

On April 7 local time, Reuters reported that members of the U.S. House and Senate said on Thursday that after months of discussions, they had selected negotiators to reach an agreement on a bill to provide $52 billion in government subsidies for semiconductor production.

Image source: Reuters

House Speaker Nancy Pelosi, a Democrat, and House Republican Leader Kevin McCarthy nominated about 80 House members, including some key committee chairmen and top Republicans, to participate in a process called a "conference committee" to reach a compromise version.

The Senate first passed chip legislation in June last year, which also authorized $190 billion to strengthen U.S. technology and research to compete with China, while the House of Representatives passed the bill in early February, which contains different provisions aimed at promoting competition with China.

The report said that the persistent chip shortage across the industry has disrupted production in the automotive and electronics industries, forcing some companies to scale back production. At the same time, there are growing calls to reduce dependence on semiconductors from other countries.

Separately, Senate Majority Leader Chuck Schumer, a Democrat, and Republican leader Mitch McConnell said Thursday they had also nominated 13 negotiators.

McConnell said, "The Senate must now restore a bill that reflects the bipartisan support it passed. Without significant concessions and changes from House Democrats, this legislation has no chance of becoming law." 

"Negotiators will ensure that the bill passed by the Senate continues to work to create more good-paying jobs, boost domestic manufacturing, and unleash American ingenuity," Schumer said.