The U.S. Senate on Tuesday moved forward on the "Chips and Science" bill that will funnel about $52 billion to makers of the chips that serve as foundational components of computers and electronics, including those in cars, appliances, hospital equipment, cell phones, defense systems and a number of other modern technological devices.
The legislation, which has undergone many iterations since last summer and was referred to as the "CHIPS+" act just last week, would also authorize a potential $100 billion over five years for scientific research and other programs. Those programs would include a new research area under the National Science Foundation that would focus on "technology, innovation and partnerships" and establish "regional innovation engines" that will leverage educational programs and private industry to commercialize technology.
"Every Research 1 university has been just absolutely obsessed with the NSF regional innovation engine solicitations, and that is one of the things that would be authorized by this CHIPS+ act," said Michael Holland, vice chancellor for science policy and research strategies at the University of Pittsburgh.
Universities that publish research with a high frequency, like Pitt and Carnegie Mellon, are among those already submitting concept papers for a chance to be one of the regional engines chosen by the NSF. Pitt just submitted a joint concept with West Virginia University on developing a bio-manufacturing economy around organ tissue and transplantation.
"That's where the 'plus' part [of the bill] comes in," Mr. Holland said Friday.
"The shortage of chips that was affecting automobile production was felt in other areas, and you know, was just sort of the most prominent symbol of this broader issue of America's international competitiveness. The whole bill, both the chips, and all of these other things, is really about trying to make sure that we're positioned for the future," he said.
The other areas of the bill that Pitt is eyeing include defense and quantum computing research, on which the university has a "critical mass of faculty working," Mr. Holland said.
The advantages of quantum computing are speed and cybersecurity, researchers say.
The Biden administration and the bill's supporters in Congress have lobbied for it as a vital asset to the U.S. economy and national security, particularly in the context of China's growing tech sectors.
"We're no longer the only game in town. China has been spending immensely to catch up, so we have to figure out what does that mean. This is the first legislation that I've seen that really takes [that] seriously," Mr. Holland said.
The legislation — which still somewhat resembles the $200 billion U.S. Innovation and Competition Act that passed the Senate last summer — received a 64-32 vote in the upper chamber Tuesday to end debate and move to a final vote, which is expected this week.
Among the "no" votes was Pennsylvania's Republican Sen. Pat Toomey, who opposes the subsidies, and who also opposed the bill last summer. He highlighted on Twitter last week a Wall Street Journal editorial that argued "competing with China is the new excuse for corporate welfare." Vermont's Independent Sen. Bernie Sanders similarly voted "no," and last week described corporate lobbyists working on the bill "like pigs at the trough."
The bill is estimated to add $79 billion to the U.S. deficit over 10 years, according to the score calculated by the Congressional Budget Office.
However, lawmakers from across the aisle joined to support the bill, including Ohio's Republican Sen. Rob Portman and Democratic Sen. Sherrod Brown, who called the package a "big win for Ohio."
Intel, which reported better-than-expected earnings last year, delayed the groundbreaking on its $20 billion chip facility in the Columbus area until Congress could agree on the legislation.
Tech companies in the Pittsburgh region are hoping to get a piece of that supply chain.
"They're [in Columbus] going to be sourcing advanced materials, the kinds of advanced materials that are that are being produced and developed by companies here," said Brian Kennedy, senior vice president of operations and government affairs for the Pittsburgh Technology Council.
Carnegie Mellon University, ground zero for many of the city's spin-off tech companies, sees the legislation as supporting " the Pittsburgh model of success —harnessing the power of research and innovation to drive economic development, create jobs, and spur regional revitalization for the benefit of all."
"Passage of this legislation will be vitally important for Pittsburgh and the surrounding region, especially given the advanced technologies that serve as the foundation of our innovation ecosystem, such as AI, robotics, energy and advanced manufacturing," CMU President Farnam Jahanian said in a statement Friday.
The U.S. House is expected to take up the legislation soon.
OTHER LOCAL TIES
Among the provisions included in the "Chips and Science" bill is Pennsylvania Democratic Sen. Bob Casey's measure to establish a U.S. Department of Energy program to foster low-emissions steel production.
"This legislation would not only take a step forward to reduce greenhouse gas emissions, but also promote new, cutting edge technologies to ensure the American steel industry remains competitive," Mr. Casey said in a statement last week.
Also on Tuesday, two of the commonwealth's Republican U.S. House lawmakers, Reps. Mike Kelly and Guy Reschenthaler, penned a letter to the U.S. Department of Transportation urging the agency's "active support in ensuring the freight rail and transit manufacturers are able to procure the necessary amount of chips and related critical components to carry out the goals of the Bipartisan Infrastructure Law, address national logistics and supply chain disruptions, and most importantly, ensure the safety of passengers ..."
Both lawmakers voted against the infrastructure law that passed in November.
Wabtec, a Pittsburgh-based rail company, said the industry "is not immune to the chip shortage [and] ensuring rail manufacturers are able to procure the necessary amount of chips and components is vital," according to a statement from Jennifer Shea, vice president of global regulatory law.
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