In response, President Joe Biden is expected to sign a piece of legislation aimed at promoting domestic semiconductor manufacturing.
Billions in tax breaks
What’s more, the legislation also includes billions worth of tax breaks to encourage investment in semiconductor production as well as billions more for research and development.
CNBC reported that the bill passed both the House and Senate with near-unanimous support from Democrats. However, Republicans were more divided.
Roughly two thirds of Republican senators opposed the legislation despite Senate Minority Leader Mitch McConnell throwing his weight behind it and most GOP House members stood against it as well.
Fox News pointed out that many conservatives feel the bill contains provisions that they consider to be corporate welfare.
Keep manufacturing here
In an opinion piece published by Fox News earlier this month, Trump-era Secretary of State Mike Pompeo condemned Democrats for putting “needless additions in the bill.”
He complained, “Those who have added these extraneous, unrelated provisions have jeopardized our security by increasing the chances that the CCP will continue to dominate this space. They are behaving shamelessly.”
However, Pompeo recalled his experience as a congressman, saying, “I remember full well that the final version of any bill was rarely exactly how I wanted it.”
“We can’t let these additions outweigh the importance of the mission of this legislation—to protect our economic and national security through dominance in the semiconductor industry,” he insisted.
“The cost of compromise on CHIPS pales in comparison to the costs we will suffer if we allow the Chinese Communist Party to one day own and control access to our critical technologies,” Pompeo continued, adding, “We can fix these bad provisions another day; today, we must on-shore this critical technology.”