House Also Submits Bill Following Senate
[Asia Economy Reporter Yujin Cho] Following the U.S. Senate, the House of Representatives has also prepared a bill to foster the semiconductor industry. This comes just one day after the U.S. Department of Commerce released the analysis results of its semiconductor supply chain information request conducted last year.
On the 26th (local time), Democratic House members announced the submission of the "America Competes Act." The bill centers on providing $52 billion (approximately 62.322 trillion KRW) in support to foster the semiconductor industry.
It also specifies that products imported from China will not receive tariff benefits and includes provisions to control U.S. capital investments in China.
House Speaker Nancy Pelosi stated, "The America Competes Act is a measure to lead the United States into the future," adding, "With this bold and results-oriented bill, we will strengthen U.S. national security and finances and advance our leadership in the world."
She continued, "The House bill will increase investment in semiconductors, develop domestic manufacturing capabilities, and strengthen supply chains to enhance competitiveness and leadership."
This bill will undergo a combined review with the "US Innovation and Competition Act," which passed the Senate by an overwhelming vote last June.
The US Innovation and Competition Act encompasses measures to counter China amid intensifying military and economic competition, aiming to secure U.S. competitiveness. Of the total $250 billion bill, $190 billion will be invested in technology development, and $54 billion is expected to be specifically allocated to semiconductors, microchips, and communication equipment.
Senate Majority Leader Chuck Schumer responded to the House bill, urging swift action by saying, "We must hurry to strengthen America's competitiveness, enhance global innovation capabilities, and establish supply chain measures," calling for prompt passage.
The bill is expected to pass as early as before March 1.
This House bill was introduced just one day after the Department of Commerce released the analysis results of data submitted by over 150 semiconductor manufacturers and demand companies worldwide, including Samsung Electronics and SK Hynix, at the end of last year.
According to the analysis, the semiconductor shortage in the U.S. is severe, with supply not meeting even five days of average demand. Based on the investigation results, the Department of Commerce plans to investigate abnormal high price phenomena in certain semiconductor sectors.
The U.S. government considers the semiconductor supply shortage a major factor exacerbating inflation. It reports that production disruptions caused by the semiconductor shortage and the resulting rise in automobile prices account for one-third of the overall price increase.
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