New Momentum for U.S. Chip Production

With new signs that the semiconductor shortage may not abate for years, the U.S. House has passed sweeping legislation known as the America COMPETES Act. Approved along party lines, the $250 billion bill aims to increase U.S. competitiveness by strengthening the supply chain. (Here’s a summary of the bill as provided by U.S. House leadership.)

Importantly for Ohio, the bill includes $52 billion to incentivize domestic chip production, as well as $45 billion in grants and loans to enhance manufacturing facilities and strengthen domestic supplies. Republicans have noted, however, that unlike the Senate-passed U.S. Innovation and Competition Act, the House bill contains billions of dollars for climate change provisions, as well as questionable trade language and pro-labor card check provisions, which were added at the last minute.

Leaders from both houses must now negotiate differences between the two bills in conference. 2/7/2022

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