Republican North Carolina Rep. Ted Budd will introduce legislation Thursday that would stop U.S. semiconductor chips from being sent to China, fixing a loophole in the multi-billion dollar CHIPS Plus Act.
The bill, first obtained by the Daily Caller, is titled the No Chips For China Act. The legislation would prevent companies that take taxpayer funding in the CHIPS Plus Act from building or transferring any semiconductor manufacturing operations to China for 10 years.
The current CHIPS Plus Act — also known as the CHIPS and Science Act — exempts legacy semiconductors from this ban, even though legacy chips are critical to many commercial electronics. Budd’s bill aims to closes this loophole.
“The CHIPS Act’s China loophole was a fatal flaw that allowed taxpayer-backed semiconductor manufacturing to continue to move to Communist China. That is unacceptable, and my bill closes that loophole. In order to be globally competitive, our tax dollars must be focused on supporting American manufacturing and American workers,” Budd told the Caller before introducing the legislation. (RELATED: Biden Admin To Distribute $50 Billion Chips Fund Based On Race And Gender)
READ THE LEGISLATION HERE:
(DAILY CALLER OBTAINED) — … by Henry Rodgers
The CHIPS Plus Act, which passed the Senate in late July, includes $52 billion for semiconductor manufacturing through the year 2025, tax credits for semiconductor manufacturing in the U.S. and $200 billion for federal science, technology, engineering and mathematics (STEM) research. (RELATED: EXCLUSIVE: House Republicans Demand Attorney General Merrick Garland, DOJ Take Action Over Vandalized Pro-Life Pregnancy Centers)
The CHIPS and Science Act passed the Senate 64-33 after 17 Republicans joined with 47 Democrats to vote in favor of the legislation. (RELATED: EXCLUSIVE: Rep. Budd Introduces Bill To Shut Down Biden’s Executive Order To ‘Promote Voter Registration’)
The House passed the $280 billion semiconductor chip and scientific research and development package in late July, and President Joe Biden signed it shortly thereafter.