US Senate Delays Vote on Semiconductor Support Bill... Biden Urges Passage Again

President Joe Biden [Photo by AP News]

[Asia Economy Reporter Jeong Hyunjin] The U.S. Senate postponed the vote on the semiconductor support bill by two days, citing difficulties for lawmakers to attend due to local weather conditions. U.S. President Joe Biden once again strongly urged the passage of the $52 billion (approximately 68 trillion KRW) semiconductor support bill.

According to the Wall Street Journal (WSJ) and others on the 25th (local time), President Biden made these remarks during a video conference with heads of major U.S. companies such as Lockheed Martin and Medtronic. He emphasized, "Congress must pass this bill as soon as possible," adding, "There is economic urgency, and this bill will support efforts to manufacture semiconductors."

James Taiclet, CEO of Lockheed Martin, who attended the meeting, told President Biden that semiconductor supply is essential not only for national security but also for the soundness of the defense and space industries.

The U.S. Senate had originally planned to hold a cloture vote on the semiconductor industry promotion bill that day, but Senate Majority Leader Chuck Schumer announced that due to issues such as an eastern storm making it difficult for lawmakers to attend, the vote would be postponed until the morning of the 26th. Once the Senate vote is completed, the bill will move to the House of Representatives for further review.

The Biden administration prepared a large-scale semiconductor support bill to foster the domestic semiconductor industry in the U.S. to counter China in the global semiconductor dominance competition. However, disagreements between the Democratic and Republican parties over specific details have prevented the bill from passing through Congress. In response, the Democrats are pushing to separately legislate the $52 billion semiconductor support portion ahead of the November midterm elections.

Currently, the passage of this bill through Congress is not guaranteed. The Senate is divided between Democrats and Republicans, and Senator Bernie Sanders, an independent with left-leaning views who caucuses with the Democrats, opposes the passage of this pro-business bill. The Wall Street Journal (WSJ) reported that some Democrats and Republicans maintain the position that semiconductor companies do not need government subsidies, making the outlook for House approval uncertain.

However, House leaders such as Speaker Nancy Pelosi are optimistic, saying the bill could be passed before the summer recess next month.

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. There have been foreign media reports that the bill may include provisions restricting investments in China, but it is reported that the U.S. semiconductor industry opposes this.

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