(Bloomberg) — Commerce Secretary Gina Raimondo led a bipartisan teleconference that included a top official in Donald Trump’s administration Monday, showcasing the Biden administration’s push for a bill designed to strengthen U.S. competitiveness against China and bolster domestic semiconductor manufacturing.
Raimondo, former U.S. national security adviser H.R. McMaster and others held the call hours before the Senate planned its next step in months of wrangling that has seen a different version of the bill pass both the House and Senate. Senate Majority Leader Chuck Schumer plans to move toward considering the legislation on Monday evening, though a final package is expected to require House-Senate negotiations and unlikely to be finalized before the end of May.
The war in Ukraine has highlighted the importance of rapidly increasing U.S. production of semiconductors, participants on the call said.
“I shudder to think what would happen to us if other countries did that to America,” Raimondo said, referring to the raft of sanctions imposed on Russia over its invasion of Ukraine.
Chinese President Xi Jinping is watching Russia’s war on Ukraine as he considers his own next steps on Taiwan, McMaster said in an interview.
‘Quite Dire’
“These two authoritarian revisionist powers are working actively to undermine us,” McMaster said. “China and Russia are in this together.”
Raimondo urged Congress to swiftly pass the China-focused bill, which includes nearly $52 billion for the American semiconductor industry amid a global chip shortage.
“The situation as it relates to semiconductors is quite dire,” Raimondo said. She said the median inventory of chips at U.S. facilities has fallen to fewer than five days, from 40 days a few years ago.
While the U.S. is a leader in chip design, roughly 90% of global chip manufacturing capacity is elsewhere — primarily in Taiwan and South Korea. That puts the U.S. at high risk of supply-chain disruptions in the event of trade disputes or military conflicts.
Monday’s call included U.S. Senator Todd Young, an Indiana Republican and Representative Doris Matsui, a California Democrat, along with a number of former officials.
“We need to act now because we’re way behind,” McMaster said on the call. “It’s been a clarifying moment for the world.”
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