PRESS RELEASE
Washington, D.C. — Senator Tom Cotton (R-Arkansas) today introduced an amendment to the CHIPS Plus package to prohibit companies that receive federal grants and tax credits from expanding semiconductor production in China. Text of the amendment may be found here.
“We should be bolstering manufacturing at home—not expanding abroad. My amendment will ensure companies that receive taxpayer funds can’t turn around and build more factories in China,” said Cotton.
This amendment would:
Eliminate loopholes that would allow semiconductor companies to take taxpayer money while expanding production of so-called “legacy semiconductors” in China.
Eliminate a “Mitigation” process that would allow semiconductor companies to expand advanced semiconductor manufacturing in China and keep CHIPS grant money while keeping taxpayer funds.
Provide a more comprehensive definition of “semiconductor manufacturing” so that companies cannot take taxpayer money and move other parts of their manufacturing supply chains like testing, packaging, and R&D to China.
Eliminate other loopholes that companies could use to argue with the Department of Commerce about whether their activities in China disqualify them from receiving taxpayer funds.