Biden meets CEO, workers; backs law to boost U.S. chip production

 WASHINGTON, July 25 (Reuters) - President Joe Biden almost met the chief executives of Lockheed Martin Corp (LMT.N), Medtronic Corp (MDT.N) and Cummins Corp (CMI.N) on Monday. officials, as well as union leaders, as part of the administration's push for legislation to boost the U.S. semiconductor industry.

"Congress needs to pass this legislation as quickly as possible," Biden said. "The economic imperative... This bill will accelerate semiconductor manufacturing jobs."

Senate Democratic Majority Leader Chuck Schumer said he was delaying the procedural vote until 11 a.m. ET on Tuesday because of severe weather concerns.

The bill includes roughly $52 billion in subsidies for U.S. semiconductor production, as well as a new four-year 25 percent tax credit to encourage companies to build semiconductor factories in the U.S. The tax credit is estimated to be around $24 billion. Other provisions include a $1 billion grant program for "ongoing communities."

Last week, the Senate passed procedural measures on a watered-down bill by a vote of 64 to 34.

Lockheed Martin CEO James Tecklet told Biden that an adequate supply of chips is "essential to national security and the health of the defense and aerospace industries as a whole."

The law aims to alleviate shortages that have disrupted production in industries such as automobiles, consumer electronics, medical equipment and high-tech weapons.

"It's about investing in America," said Commerce Secretary Gina Raimondo, who attended the event. "The United States has become completely dependent on China, especially" for chips used in aircraft, medical equipment and industrial machinery.

It is part of a broader government-wide effort to counteract a rising China and address supply chain problems by reducing U.S. companies' reliance on foreign-made semiconductors.

Senator Bernie Sanders slammed the legislation, calling it a "blank check" for the "lucrative" chip industry, which accepts state funding to replace U.S. factories that have closed over the past 20 years.

Biden dismissed criticism that the legislation was a handout to big companies, noting that trade would be able to recover money from companies that failed to meet their obligations.

In June 2021, the Senate approved a bipartisan $250 billion bill that would increase spending on technology research and development. The House passed its own version in February.

💌 Resources and references: reuters.com 🔊 Biden meets CEO, workers; supports bill to boost US chip production