Biden Meets With CEOs Of These 3 Companies To Discuss Pending Semiconductor Legislation

As part of the White House push for legislation to support the U.S. semiconductor industry, President Joe Biden is meeting virtually on Monday with the chief executives of Lockheed Martin Corp LMT, Medtronic PLC MDT, and Cummins Inc CMI, as well as labor leaders, according to Reuters.

The topic of discussion is focused on Biden’s call on the various companies to support the passage of the CHIPS Act and FABS Act, both of which incentivize U.S. semiconductor companies to keep production competitive with production in China, and Taiwan.

The initiative attempts to alleviate a scarcity that has hampered output across a range of sectors, including high-tech weapons, electronics, and vehicles.

The CHIPS Act would provide $52 billion in subsidies for U.S. chipmakers to build factories to manufacture chips.

The FABS Act, which facilitates American-built semiconductors, aims to offer tax-based incentives for the development, enlargement, or modernization of semiconductor fabrication factories (also known as "fabs") and processing machinery in the country.

Benzinga previously reported that Intel Corporation INTC, Micron Technology, Inc. MU, and Texas Instruments Incorporated TXN would benefit greatly from the passage of the CHIPS and FABS Act, but American semiconductor firms that don't make their own chips would not receive any benefits or tax breaks from the subsidies.

Advanced Micro Devices, Inc. AMD, QUALCOMM, Inc. QCOM, and NVIDIA Corporation NVDA support a modified version of the FABS Act that has been introduced in the House of Representatives that includes tax credits for both manufacturing and chip design.

Photo: Courtesy of Gage Skidmore on flickr