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Reuters: U.S. senators to hold confidential briefing on semiconductors to advance $52 billion subsidy bill

Feb 02 77
(Reuters) - U.S. Senator Maria Cantwell will hold a confidential briefing with Pentagon officials and the chief executive of Intel Corp on Thursday for lawmakers to negotiate a plan for U.S. semiconductor manufacturing, sources said. Compromise measures to provide $52 billion in subsidies to the industry.

The briefing will examine supply chain threats critical to national security, with a focus on semiconductors, and will examine their importance to defense systems and critical infrastructure, officials said.

U.S. Commerce Secretary Gina Raimondo, Defense Undersecretary for Research and Engineering David Honey and U.S. Air Force chief scientist Victoria Coleman are expected to attend, the sources said. In addition, Intel CEO Patrick Gelsinger is expected to attend.

The report pointed out that the White House National Economic Council and the staff of the House and Senate main committees held a meeting on Monday to try to reach an agreement.

In addition, on May 12, more than 100 House and Senate lawmakers began formal conference committee negotiations on competing bills aimed at boosting U.S. competitiveness against China and spurring semiconductor production. Cantwell chairs the Conference Committee.

A persistent shortage of chips has disrupted the auto and electronics industries, forcing some companies to scale back production. Raimondo and many companies believe the shortage will continue until at least the end of 2023.

Lawmakers have warned that some major investments in new U.S. chip production could be jeopardized if Congress fails to act.

"I've been talking to all the defense contractors recently and they're working overtime on Ukraine supplies, but the biggest pain point is chips. Because every 'Javelin' launch system needs 250 chips or more." Raimondo on the Senate in April business hearing.

"There is momentum in Congress, but it's taking too long," Raimondo told a Financial Times forum on Wednesday.

Separately, three lawmakers, including Senators Bernie Sanders and Elizabeth Warren, on Monday called for a ban on government-subsidized chipmakers from doing stock buybacks or outsourcing work and requiring them to issue warrants to the U.S. government "as much as possible" or equity.