Chips Bill Clears Senate 68-32; House Prospects Unclear

The Senate got the necessary "yes" votes to pass the U.S. Innovation and Competition Act Tuesday, as expected (see 2106080008). The vote was 68-32. S-1260, previously known as the Endless Frontier Act, includes $52 billion for U.S. chipmaking and $1.5 billion to implement the Utilizing Strategic Allied Telecom Act. The semiconductor money includes $49.5 billion to implement the Creating Helpful Incentives to Produce Semiconductors for America Act. Senate passage of S-1260 "is a pivotal step toward strengthening U.S. semiconductor production and innovation and an indication of the strong, bipartisan support in Washington for ensuring sustained American leadership in science and technology,” said Semiconductor Industry Association President John Neuffer Tuesday. The "content on China" in S-1260 "distorts facts" and "denigrates China's development path," said a Chinese Foreign Affairs Ministry spokesperson Wednesday. "How the U.S. intends to develop and strengthen its competitiveness is its own business, but we are firmly against the U.S. making an issue out of China and perceiving it as an imaginary enemy." Prospects for House passage of S-1260 remain unclear when it returns from recess Monday. The Science Committee plans to vote Tuesday on the rival National Science Foundation for the Future Act (HR-2225), a House aide said. Committee Chairwoman Eddie Bernice Johnson, D-Texas, raised objections about S-1260’s proposal to create a Technology Directorate within NSF.