Dems Stress National Security as Computer Chips Bill Stalls

The Biden administration and congressional Democrats are warning of dire ramifications for the economy and for national security if Congress fails to pass a bill by the end of July that is designed to boost semiconductor manufacturing in the United States.

Their appeals have grown increasingly urgent as Senate Republicans led by Mitch McConnell threaten to block the computer chips legislation, creating a standoff that threatens to derail one of the biggest bipartisan initiatives in Congress. Republicans have tied their cooperation to Democrats not moving forward with a separate package of energy and economic initiatives that GOP lawmakers warn would increase taxes on small businesses and hurt the economy. It’s a demand that Democrats dismiss out of hand.

Commerce Secretary Gina Raimondo said computer chipmakers are being offered lucrative incentives from other countries such as South Korea, Japan, France, Germany and Singapore to locate plants there. She cited Monday’s announcement by STMicroelectronics and GlobalFoundries to build a semiconductor factory in France as an example of other countries moving faster than the U.S. on the issue.

“Bottom line is there are very real, very devastating consequences if Congress doesn’t do its job in the month of July,” Raimondo told The Associated Press.

Those consequences mean not only lost job opportunities for the U.S., but an overdependency on other nations for semiconductors that could become a critical vulnerability because they are so important for products ranging from cars and cellphones to modern weapons systems.

Raimondo was to be part of a closed-door briefing with senators Wednesday to discuss the national security implications of the semiconductor legislation. Set to join her were Deputy Defense Secretary Kathleen Hicks and Director of National Intelligence Avril Haines.