Republicans warm to $52B computer chip bill, adding momentum

By KEVIN FREKING
Associated Press

WASHINGTON (AP) — Key Republicans are warming up to passing a bill that provides roughly $52 billion in incentives for the semiconductor industry.

Three weeks ago, the computer chips bill looked like it could be in trouble despite having significant bipartisan support.

That’s when Senate Republican leader Mitch McConnell said there would be no bill as long as Democrats pursued what he called a “partisan reconciliation” package.

But circumstances have changed. GOP Senator John Cornyn says that removing proposed tax hikes in the reconciliation bill has opened the door to Republican cooperation on semiconductors.

The Biden administration warns computer chip makers may expand overseas instead of the U.S. unless the bill passes.