Use Chips Funding to Combat Mergers: Warren to Raimondo
Sen. Elizabeth Warren, D-Mass., urged Commerce Secretary Gina Raimondo to use funding for the Creating Helpful Incentives to Produce Semiconductors for America Act included in the FY 2021 National Defense Authorization Act and additional money targeted for inclusion in legislation…
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under House-Senate negotiation to “push back against … consolidation” in that industry. The chambers are working to produce a conference bill marrying elements of the Senate-passed U.S. Innovation and Competition Act (S-1260), which includes $52 billion to boost chipmaking, and a set of similar House-passed measures. Senate Majority Leader Chuck Schumer, D-N.Y., abandoned efforts (see 2111180073) to include S-1260 in the FY 2022 NDAA (S-1605), which the chamber passed Wednesday 88-11. President Joe Biden is expected to sign that measure. “The semiconductor industry has undergone significant consolidation in the last decade,” which “has reduced competition” and “has harmed consumers by enabling these dominant companies to increase prices and underinvest in key capabilities, which has the effect of also reducing product innovation and product quality,” Warren said in a letter to Raimondo Thursday. Warren praised the recent FTC lawsuit to block Nvidia buying Arm from Softbank (see 2112030002), but believes “the U.S. government has other tools beyond antitrust enforcement that could increase competition, protect consumers and workers, and promote supply-chain resiliency.” She cited S-1260’s proposed $19 billion in FY 2022 and $5 billion in annual funding for FY 2023-26 for incentivizing U.S. chip manufacturing.