Posted Jul 29, 2022, 8:31 AMUpdated on Jul 29, 2022 at 8:32 am
Semiconductor shortages, exacerbated by the health crisis, have underscored the West’s dependence on the rest of the world, notably China, for supplies. States are also trying to regain control as much as possible. A step has been taken in this direction in the United States: Congress adopted a law on Thursday which releases 52 billion dollars in subsidies to revive the production of semiconductors and tens of billions more for research and development.
The text, voted on Wednesday in the Senate, collected the votes of 243 elected members of the House of Representatives, including 24 Republicans – 187 opposed it. The law must now be ratified by President Joe Biden. But that shouldn’t be a problem as it represents a victory snatched after a long struggle and (rare) good news as the mid-term elections approach.
An issue of independence from China
This plan “will reduce the costs of daily living, create well-paid industrial jobs in the country and strengthen the leadership position of the United States in the industry of the future”, welcomed the American president. The Democrat had previously spoken with his Chinese counterpart Xi Jinping, whose government has strongly condemned a law which, “under the guise of strengthening American competitiveness, reduces scientific and technological cooperation” between the two countries.
Demand for semiconductors, the heart of all modern electronics, has exploded during the pandemic, causing global shortages further exacerbated by the closure of Chinese factories in the face of Covid resurgences. The United States, whose share in world production has fallen sharply in recent years to the benefit of Asia, has suffered from these shortages. This notably slowed the production of new cars last year, driving up prices in the automobile industry.
“The pandemic has exposed serious vulnerabilities in our supply chains, particularly our reliance on certain regions for certain critical materials,” U.S. Commerce Secretary Gina Raimondo said in a statement. “This law places our country in a stronger position to withstand future economic shocks and avoid major disruptions in the daily lives of the American people,” she said.
A text giving birth in pain
Despite a statement shared by Democrats and Republicans on the imperative to relaunch national production, elected officials in Congress failed for months to agree on a final text. They finally agreed to release 39 billion dollars in aid for semiconductor manufacturers and 13 billion for research laboratories.
Several large groups have already indicated that they intend to use it to open new factories in Ohio or Indiana, for example. The law, whose total envelope is estimated at 280 billion dollars, also provides 100 billion over five years for research and development in other sectors, and to strengthen the security of the Supreme Court of the United States.
Senator Bernie Sanders, a figure on the left, was moved before the vote on the sums allocated to “profitable” companies which, according to him, “have closed 780 factories in 20 years” in the United States. The text “includes important safeguards to ensure that companies that receive taxpayers’ money invest in America”, assured Joe Biden.
Avec AFP
–
