The Senate today moved forward on legislation that aims to boost
semiconductor production here in the US It comes as chip shortages
impacting the everyday lives of Americans. Lisa Desjardin has that
story.
I'm not refrigerators, microwaves, computers, mobile phones, cars,
military grade weapons are all things that require semiconductors
or chips to function. The bill making its way through Congress includes
at least $52 billion in grants and incentives to design and manufacture
chips and a 25% tax credit to help build high tech facilities.
The size of the bill could also grow in the next day. Even so, this
legislation is a scaled down version of a larger bill aimed at boosting
U. S competitiveness with China for more on this, I'm joined by Secretary
of Commerce Gina Raimondo. Thank you for joining us. There's a fascinating
legislative story to this. I know you've been up and back on the
hill many times to try and get this to this point.
But let me just ask you the big question. Why is this an important
bill? Why is this the priority? Thank you, Lisa.
Uh, well, as you just said, every piece of modern medical equipment,
Uh, every piece of military equipment, everything that needs a computer
or that is digital runs on chips. And the reality is we don't make
very many chips in the United States of America, in fact, alarmingly
for the most sophisticated chips
We buy. Almost all of them from Taiwan were incredibly dependent
on Asia and Asian countries for our supply of chips, including those
that are necessary in all of our military equipment. And so the United
States is at a risk. Um and we need to make more of these on our
shore's in the United States so that we can not only create jobs
But also protect our people. I haven't heard anyone disagree with
that with this idea that there's a need, But some folks say there's
other needs as well and we're talking about $50 billion upwards of
that. That's where they could go to perhaps freezing student loans
for a year or needs for the pandemic and disease. Why is this more
important than those other things our country needs now?
Yeah, well, first of all, I agree with President Biden that we ought
to be able to do all of that. Uh, but so I'm not sure it's an either
or but here's what I would say about this. This is a core nationals
security imperative right now, As I said, before we buy all of these
chips have a certain kind from Taiwan.
We are heavily dependent on China and Taiwan. We don't make this
stuff in America. And yet it is what we need, uh, in military equipment
in pacemakers in the hospital, and they don't in cars you saw in
Lansing. I think GM had to close, uh, facility for a week and put
people out of work because they ran out of chips. We just can't do
that. We just can't allow ourselves to be overly reliant on these
countries in Asia to defend our
Country. So this is a core national security objective, which will
create, you know, by the way hundreds of thousands of good high paying
manufacturing jobs in the United States of America.
So it has to happen. It has to happen now. It's just common sense.
It is just common sense that we make this investment. So we make
chips in America, create jobs and secure national security. I want
to give you a chance to respond to also some criticism that came
from the Wall Street Journal. Specifically, we know that the U. S
has been, um less of a world supplier of these chips over. That's
what we're trying to correct here. But the Wall Street Journal says
there's some other statistics not mentioned is that the US leads
and ship design or
Already more than 50% of the world 52% of world supply on that chip
making equipment and that seven of the world's 10 largest semiconductor
companies are based in the US
So given that and given that some Democrats have said they see this
as a corporate giveaway
Um, you mentioned the urgency. Why is it so urgent at this moment?
Um, so it's so urgent at this moment because these companies have
a choice and it is true. Many of them are American companies. But
American companies operate all over the world and they have a choice
as to where to operate. And if we and every other country recently
Germany, France, Singapore, Japan are offering incentives to those
companies to to expand in those countries.
And so there is no question that these companies will expand and
we'll add jobs and add production.
The only question is whether they will do it in the United States
of America on American soil, which is what we need for our national
security or whether they will do it in another country. And so this
is about having these jobs and this secure supply in our country,
so that when we need it, we have it. Um, some in the manufacturing
community. The semiconductor community are saying that too much of
this bill would help one company Intel.
How do you respond to that?
Absolutely not true. Absolutely not true. It remains to be seen who
will receive these incentives and it's really any company. Uh, willing
to make a big commitment to invest in the United States to produce
chips is eligible for the incentives and there'll be an open, transparent,
competitive process.
Uh huh. And you know, everybody ought to apply. Who's qualified?
You come from having run a state Rhode Island. Now you're having
to deal with Congress and Congress doesn't really operate well on
deadlines. So when you say this is needed now, you mean in the next
few weeks, right? Are these companies making decisions now, about
where to give these jobs? Can you help explain that?
Yes, I literally mean in the next couple of weeks. Um, you know,
Intel, which is a big semiconductor company is entertaining offers
from Italy and Spain and Germany. They have to make the decision
this summer because they have to start the expansion now. Other companies.
It's the same thing. There's an explosion of demand for chips and
these companies under a lot of pressure from their customers.
To hurry up and expand so they can fulfill the orders. Um, I would
say tonight. Uh, perhaps while we're talking, the Senate is poised
to take the first of several votes to take action on this, and I
think it's time for Congress to act and get this to the president's
desk in the next couple of weeks.
You know, I'm a national debt nerd. So one thing I've noticed about
this bill is it isn't paid for this is this would be adding to the
deficit. Um why is it worth adding to our loan and in fact, including
loans from China in order to boost our competitiveness with China?
Because this is about national security. We can't put a price on
our national security Right now. The United States is denying semiconductors
to Russia, and as a result, their satellites and military equipment
are literally falling out of the sky. Because they don't have semiconductors
that can be us. Taiwan or China decided not to supply the United
States chips. That would be us we wouldn't be able to defend ourselves.
So I think $52 billion is is really a drop in the bucket so that
we can
Then, you know, have peace of mind and national security.
One final big picture. Economic question. Inflation, obviously a
concern of every American big concern on Capitol Hill. How do you
answer those? Maybe some on the hill who are asking you?
This administration didn't get it right on inflation. It's worse
than we thought it was. Why should we trust you in other areas like
this? Inflation is a global problem. You know, we were chatting before
we came on about Europe, Europe seeing much higher inflation than
we are in certain countries. It's double digit. This is a global
problem driven largely by the pandemic by Putin's war, and the Fed
has taken strong action in our administration. The president's administration
is doing everything we know how to do to bring
Down inflation.
So I think this is apples and oranges. But we're talking about here
is getting behind a bipartisan bill to increase domestic productions
of a critical technology to secure our future Separately. Inflation,
which is they say is a global issue and we are going to get that
under control.
Commerce Secretary General Mando We know you've been working on this
for a long time. Thank you for talking with us about it.