Senate aims to boost tech industry in competition with China


The Senate is on pace to approve legislation aiming to boost semiconductor production in the U.S. The bill is a bid to protect economic and national security in the face of growing competition internationally, most notably from China

WASHINGTON — The Senate was on pace to approve legislation Tuesday that aims to boost U.S. semiconductor production and the development of artificial intelligence and other technology in the face of growing competition internationally, most notably from China.

The centerpiece of the bill is a $50 billion emergency allotment to the Commerce Department to stand up semiconductor development and manufacturing through research and incentive programs previously authorized by Congress. The bills overall cost would increase spending by about $250 billion with most of the spending occurring in the first five years.

Supporters described it as the biggest investment in scientific research that the country has seen in decades. It comes as the nations share of semiconductor manufacturing globally has steadily eroded from 37% in 1990 to about 12% now, and as a chip shortage has exposed vulnerabilities in the U.S. supply chain.

The support for the bill demonstrates how confronting China economically is a mission that unites both parties in Congress. That’s a rarity in an era of division as pressure grows on Democrats to change Senate rules to push past obstruction and gridlock.

The premise is simple, if we want American workers and American companies to keep leading the world, the federal government must invest in science, basic research and innovation, just as we did decades after the Second World War, said Senate Majority Leader Chuck Schumer, D-N.Y. Whoever wins the race to the technologies of the future is going to be the global economic leader with profound consequences for foreign policy and national security as well.

Senate Minority Leader Mitch McConnell, R-Ky., said the bill was incomplete because it did not incorporate more Republican-sponsored amendments. He nonetheless supported it.

Needless to say, final passage of this legislation cannot be the Senate’s final word on our competition with China,” he said. It certainly won’t be mine.

While the bill enjoys bipartisan support, a core group of GOP senators has reservations about the bills costs.

One of the bills provisions would create a new directorate focused on artificial intelligence and quantum science with the National Science Foundation. The bill would authorize up to $29 billion over five years for the new branch within the foundation with an additional $52 billion for its programs.

Other measures spell out national security concerns and target money-laundering schemes or cyberattacks by entities on behalf of the Chinese government. There are also buy America provisions for infrastructure projects in the U.S.

Senators added provisions that reflect shifting attitudes toward Chinas handling of the COVID-19 outbreak. One would prevent federal money for the Wuhan Institute of Virology as fresh investigations proceed into the origins of the virus and possible connections to the labs research. The city registered some of the first coronavirus cases.

Its unclear whether the measure will find support in the Democratic-led House, where the Science Committee is expected to consider it next week. Rep. Ro Khanna, D-Calif., who has been working with Schumer for two years on legislation thats included in the bill, called it the biggest investment in science and technology since the Apollo spaceflight program a half century ago.

AP Congressional Correspondent Lisa Mascaro contributed to this report.



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