Biden launches new semiconductor push amid tensions with China


>>> THEY HAVE SOME OF THE
SMALLEST PIECES OF TECHNOLOGY,
BUT THEY ARE IMPORTANT,
SEMICONDUCTOR CHIPS.
THEY ARE IMPORTANT FOR PHONES,
CARS, COMPUTERS AND YOU NAME IT.
AND NOW BIDEN ADMINISTRATION IS
TRYING TO BEAT OUT CHINA TO BE
THE GLOBAL LEADER TO PRODUCE
THESE.
JEREMY IS AT THE WHITE HOUSE.
YOU SPOKE TO THE COMMERCE
SECRETARY ABOUT THIS CHIPS
INITIATIVE AND WHAT DID SHE SAY?
>> ONE OF THE THINGS THAT THE
COMMERCE SECRETARY WANTED TO BE
CRYSTAL CLEAR ABOUT, IT IS A
NATIONAL SECURITY INITIATIVE TO
MAKE SURE THAT THE U.S. IS NOT
RELIANT ON THE FOREIGN PRODUCERS
FOR THE ADVANCED CHIPS THAT ARE
ESSENTIAL FOR A WHOLE RANGE OF
ISSUES FOR COMMERCIAL
APPLICATIONS, AND KEY MILITARY
TECHNOLOGIES AS WELL, BUT ONE OF
THE THINGS THAT SECRETARY
RAMONDO TOLD US THAT TO MEET THE
SECURITY GOALS IS TO MAKE SURE
THAT THE U.S. WILL HAVE A
WORKFORCE TO MEET THE NEED.
SO THE U.S. IS OPENING UP
SUBSIDIES FOR CHIPS
MANUFACTURERS IN THE UNITED
STATES, AND MAKING SURE THAT
COMPANIES APPLYING FOR THE
FUNDS, THEY HAVE TO LAY OUT HOW
THEY WILL MEET SOME OF THE
WORKFORCE DEVELOPMENT GOALS IN
TERMS OF PLANNING TO WORK WITH
THE EDUCATIONAL INSTITUTIONS TO
PROVIDE THE TRAINING TO ENSURE
THERE IS THAT HIGHLY SKILLED
WORKFORCE TO BE ABLE TO PRODUCE
THE CHIP SCHIPS.
THEY WILL BE WORKING WITH THE
DIVERSITY OF THE CHIPS
MANUFACTURING, AND ALSO THE
CONSTRUCTION OF THE CHIPS
MANUFACTURING PLANTS TO REQUIRE
FROM 120 TO 140,000 CONSTRUCTION
WORKERS TO BUILD ALL OF THE
PLANTS ACCORDING TO THE COMMERCE
SECRETARY.
THEY ARE ALSO TRYING TO MEET
SOME KEY DOMESTIC POLICY PLAN AS
WELL.
ANY APPLICANT APPLYING FOR MORE
THAN $150 MILLION IN FUNDING
FROM THE CHIPS PROGRAM IS ALSO
GOING TO HAVE TO ENSURE THEY LAY
OUT HOW THEY INTEND TO PROVIDE
SOME ACCESS TO CHILD CARE
WHETHER ON SITE OR CHILD CARE
SUBSIDIES FOR THE WORKFORCE WITH
THE GOAL OF DIVERSIFYING THE
WORKFORCE AND MAKING SURE THEY
ARE ATTRACTIVE JOBS SO THAT THE
U.S. CAN HAVE ENOUGH PEOPLE TO
BE IN THESE POSITIONS TO MEET
THE NATIONAL SECURITY GOALS, BUT
THAT IS THE BIG PICTURE OF THE
NATIONAL SECURITY POSITIONS ARE
KEY THAT SECRETARY RAMANDO
WANTED TO CONVEY.
>>> AND NOW, AS WE LOOK INTO
THIS SITUATION OF CHINA TONIGHT
IS CULMINATING IN A COMMITTEE OF
STRATEGIC COMPETITION BETWEEN
THE U.S. AND CHINA.
OUR NEXT GUEST IS DEMOCRATIC
CONGRESSWOMAN COMING IN TO TALK
ABOUT THE CHIPS ACT AS JEREMY
DIMON WAS PUSHING THROUGH, AND
IT IS SOUNDING LIKE ON PAPER,
VERY GOOD, THE U.S. OUTCOMPETING
CHINA IN A KEY INDUSTRY, AND WHY
ARE YOU CONVINCED THAT IT IS
GOING TO WORK?
>> WELL, THE REMAINDER OF THIS,
KATE, IS THAT WE INNOVATED THE
MICROCHIPS IN THE UNITED STATES
OF AMERICA, AND AT POINT WE WERE
MAKING 40% OF THEM HERE.
AND NOW WE MAKE LESS THAN 10%.
AND SO WE ARE SEEING THE
RAMIFICATIONS OF THE CHIP
SHORTAGE, AND I AM ENTHUSIASTIC
TO BE THE LEAD AUTHOR OF THE
CHIPS BILL, AND WE HAVE
BOLSTERED SCIENCE AND
TECHNOLOGY, AND WE ARE INVESTING
IN THE WORK COMPONENT OF PHASE
TWO.
AND WE WANT TO BE LEADING BY
MANUFACTURING AND MADE IN THE
UNITED STATES OF AMERICA, AND IT
SOUNDS GOOD TO SAY, BUT WE HAVE
TO HAVE THE STRATEGIES IN ORDER
TO DO IT.
>> I AM SURE THAT YOU AGREE WITH
THE COMMERCE SECRETARY THAT
JAMIE IS LAYING OUT THAT SHE
VIEWS THIS AS A NATIONAL
SECURITY ISSUE.
GIVEN THE HIGENNED TENSION OF
THE U.S. AND CHINA RIGHT NOW,
ARE YOU CONCERNED THAT THE PUSH
IS GOING TO INFLAME THINGS MORE
RATHER THAN BRING THE
TEMPERATURE DOWN?
>> WELL, LOOK, WE ARE A
MANUFACTURING DESTINATION.
NOBODY SHOULD BE AFTER FRIDAY OF
COMPETITION, AND NO ONE AND
REALITY IS THAT WE DON’T WANT TO
BE OVERLY RELIANT ON ANY COUNTRY
FOR GOODS, MATERIALS OR
COMPONENTS.
THAT IS WHAT IS HAPPENING WITH
CHIPS.
IT WAS A WAKE-UP CALL.
THE COMPONENTS I AM BRINGING TO
THE COMMITTEE AS A MANUFACTURING
POLICY EXPERT IN THE MIDWEST,
WHAT DO WE NEED TO GET IN FRONT
OF FOR THE NEXT ROUND OF R&D,
ANQUAN TUM COMPECOMPETING, AND
WE SEE AS FAR AS WHAT IS GOING
INTO THE AUTOMOBILES.
IT IS EXCITING, BUT IT IS PART
OF THE WAKE-UP CALL.
I JUST HEARD FROM THE GROUP AND
ANYTHING THAT SUPPLIED FROM
GRAPHITE IS COMING FROM SAF FIT.
I HAVE BEEN TALKING ABOUT THIS
SINCE THE AUTO RESCUE, AND HERE
WE ARE ABOUT TO HIT THE QUARTER
CENTURY MARK FOR THIS NATION,
AND WE HAVE TO THINK ABOUT THIS
POLICY IN A NEW WAY.
>> PROPROACTIVE RATHER THAN
REACTIVE AND CONGRESS HAS A
DIFFICULT WAY WITH THIS.
AND NOW, WITH THE TENSIONS OF
CHINA, IT IS THE REAL
POSSIBILITY THAT CHINA IS GOING
TO SEND LETHAL AID TO RUSSIA IN
THE FIGHT AGAINST UKRAINE.
I ASKED THE CHAIR OF THE FOREIGN
AFFAIRS COMMITTEE, AND HE SAID
THAT MOVE WOULD BE CROSSING A
RED LINE.
LET ME PLAY THIS FOR YOU FROM
MICHAEL McCAUL.
>> THIS IS CROSSING A RED LINE
FOR ME, IN THIS CALL, AND
SANCTIONS AN EASY ONE, AND
CUTTING OFF SEMICONDUCTOR CHIPS
WOULD BRING RUSSIA AND CHINA TO
THEIR KNEE, BECAUSE IT WOULD NOT
BE A BAD WAY OF LOOKING AT IT.
>> DO YOU AGREE?
>> THE CCP SEEMS TO BE ALL OVER
THE PLACE LOOKING AT RUSSIA.
CERTAINLY, THEY ARE CALLING FOR
THE END OF THE WAR, BUT NOT BY
ANY MEANS OF THE END OF THE WAR.
YOU SAW THE PRESIDENT SPEAK TO
THAT RECENTLY IN SAYING THAT IT
DID NOT MAKE A LOT OF SENSE.
NOW WE ARE LOOKING AT THEM
POTENTIALLY SENDING ARMS TO
RUSSIA WHICH WOULD BE MIND
BLOWING AND DISAPPOINTING.
THE STEPS THAT I THINK THAT WE
NEED TO TAKE IN RESPONSE ARE
GOING TO HAVE TO BE SERIOUS.
THEY ARE GOING TO HAVE TO BE
AGGRESSIVE, AND THEY CAN’T BE
SINGULAR.
WE WILL HAVE TO ACT ALONGSIDE
OUR WESTERN ALLIES, AND ALLIES
TO THE SOUTH OF US.
IN UKRAINE WITH THE WAR ONE-YEAR
ON, IT IS NOT ACCENTABLE, AND WE
CANNOT AL LOUL LAWLESS AWE COB
RA SIS.
IF CHINA DOES SELL ARMS, THEN IT
WILL BEGAT ACTION.
>> YOU HEARD THIS HERE FROM THE
HOUSE SELECT CHAIRMAN OF THE
COMMITTEE.
AND THEY SAID THAT YOUR WORK AS
A COMMITTEE IS GOING TO BE
BIPARTISAN.
THERE ARE VERY FEW EXAMPLES IN
RECENT MEMORY REALLY OF
COMMITTEES ON THE HILL THAT
REALLY DO THAT, ARE BIPARTISAN
TO START, AND EVEN IF THEY START
OUT THAT WAY WITH THE GOAL TO
END UP THAT WAY.
WHY DO YOU THINK THAT YOUR
COMMITTEE CAN PULL THAT OFF?
>> WELL, I REMAIN OPTIMISTIC.
AND EVEN WITH THE EXISTENTIAL
CHALLENGES OF THE CCP WILL BEGET
COLLABORATION, YOU CAN SEE MR.
GALLAGHER AS THE CHAIRMAN OF THE
FULL COMMITTEE ADDS AND
BACKSIDE, AND CERTAINLY,
LISTENING TO THE STAKEHOLDERS
AND I WAS AT HOME TO CONVENE
SOME OF THE STAKEHOLDERS TO FIND
OUT WHAT THE AUTOMOTIVE SECTOR
NEEDS, AND WHAT THIS COMPETITION
MEANS AND ON THE WORKFORCE FRONT
AND THE PRODUCTION FRONT ARE
VERY REAL.
THAT IS SOMETHING THAT I WANT TO
BRING TO THE COMMITTEE AND I AM
CERTAINLY EX
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