US Senate Expected to Pass Semiconductor Support Bill This Week... Will It Clear the First Hurdle?

President Joe Biden of the United States [Photo by Reuters]

[Asia Economy Reporter Jeong Hyunjin] The U.S. Senate is expected to pass a semiconductor industry promotion bill this week that provides a total of $52 billion (approximately 68 trillion KRW) in support for the domestic semiconductor industry.

According to the Washington Post (WP) and others on the 24th (local time), the Senate will hold a cloture vote on the semiconductor industry promotion bill on the 25th. If the Democrats secure more than 60 votes in this vote, the bill can proceed to a final vote without a filibuster (legal obstruction of legislative progress). WP forecasts that the vote could be concluded as early as the 26th or 27th. Once the Senate vote is completed, the bill will move to the House of Representatives for further review.

This bill is being promoted by the U.S. government to counter China in the global semiconductor dominance competition and aims to massively foster the semiconductor industry within the United States. Although the bill was introduced and pushed for passage in both the Senate and the House, Democrats and Republicans have sharply clashed over specific details, preventing it from passing through Congress. Therefore, ahead of the November midterm elections, the Democrats are pursuing a plan to separate and legislate only the $52 billion (approximately 68 trillion KRW) support portion for semiconductors.

Currently, the Senate is divided between Democrats and Republicans. Additionally, Senator Bernie Sanders, a prominent left-leaning independent who caucuses with the Democrats, opposes the passage of this pro-business bill, requiring persuasion efforts. Since at least 10 Republican votes are also needed, passing the bill is expected to be challenging. However, since the bill secured 64 votes in favor during the cloture vote on the 19th, there is an assessment that momentum has been gained.

If this bill passes, companies such as U.S.-based Intel, Taiwan's TSMC, and Samsung Electronics, which plans to expand its factory in Texas, are expected to be the biggest beneficiaries. Foreign media reports have indicated that the bill may include provisions restricting investments in China, but the U.S. semiconductor industry is reportedly opposing this.

Gina Raimondo, U.S. Secretary of Commerce, who strongly supports the passage of this bill, appeared on CBS's 'Face the Nation' on the same day and emphasized the urgent need to pass the semiconductor industry promotion bill, stating, "Currently, virtually all core semiconductors are produced overseas." She added, "Countries including France, Germany, Singapore, and Japan all provide incentives to foster semiconductor companies," and said, "We must protect ourselves."

This content was produced with the assistance of AI translation services.