Sen. Bernie Sanders (I-Vermont) took semiconductor giant Intel's (INTC) top executive, Pat Gelsinger, to task for comments regarding legislation that Congress is assessing.
The Creating Helpful Incentives for the Production of Semiconductors for America Act (CHIPS) is intended to reduce U.S. reliance on foreign-made semiconductors.
The act would provide $52 billion in government subsidies to companies that produce semiconductors.
'Sounds Like Extortion to Me'
Sanders pointed to Gelsinger's comments last week on CNBC's "Squawk Box," where the CEO told legislators "do not go home for August recess until you have passed the Chips Act because I and others in the industry will make investment decisions."
"Do you want those investments in the U.S. or are we simply lack competitiveness to do that here, that we need to go to Europe or Asia for those?" Gelsinger said. "Get the job done, do not go home for August recess without getting these bills passed."
Sanders tweeted that the interview "tells us everything that we want to know about the American oligarchy about corporate arrogance and the state of American politics."
"The CEO of a major corporation, which made nearly $20 billion in profits last year and a CEO, who received $179 million compensation package," Sanders said, "is saying to Congress that if you don't give my industry the microchip industry $76 billion and my company it is estimated some 20 or $30 billion, that despite their profound love for our country and their respect for American workers and their understanding of the needs of the US military, and the healthcare industry, in spite all of that, in order to make more profits they are prepared to go to Europe and Asia."
Sanders concluded by saying that "I am thankfully not a lawyer, but that sure sounds like extortion to me."
'There is More to Do'
A spokesman for Intel said the company declined to comment on Sanders' remarks.
"More generally, we are encouraged by yesterday’s Senate vote on the Motion to Proceed," he said, "but there is more to do. U.S. government incentives for domestic semiconductor manufacturing are critical for both our national and economic security, and we will continue to work with Congress to get a final vote to fund the Chips Act."
The Senate on July 19 voted 64-34 to move ahead with the legislation. Gelsinger tweeted his thanks to Sens. Chuck Schumer (D-New York), Maria Cantwell (D-Washington) and John Cornyn (R-Texas) for their efforts.
"I know there is much more to do, but this is a great step to protecting our national and economic security," Gelsinger said.
"Run your company right," one person responded. "Stop asking for our money!"
"Thanks for your energy and leadership,@PGelsinger! #OneIntel," another tweeted.
Automakers and other industries have been hit hard by the chip shortage. In addition, U.S. officials are concerned about chips coming from China.
In a July 19 interview on the PBS News Hour, Commerce Secretary Gina Raimondo said that "we buy all of these chips of a certain kind from Taiwan."
"We are heavily dependent on China and Taiwan. We don't make this stuff in America," she said. "And yet it is what we need in military equipment, in pacemakers in the hospital, in cars."
'Intentionally Sabotaging'
Raimondo said that it was "absolutely not true" that the bill would help Intel, as some in the semiconductor community have said.
"It remains to be seen who will receive these incentives," she said. "And it's really any company willing to make a big commitment to invest in the United States, to produce chips is eligible for the incentives. And there will be an open, transparent, competitive process. And everybody ought to apply who's qualified."
Intel recently said it would increase the prices of its flagship products such as central processing units for servers and computers and several other products, including chips for for wi-fi and other connectivity.
Sanders made his comments about Intel just days after lambasting Sen. Joe Manchin (D-West Virginia) for "intentionally sabotaging" President Joe Biden's climate change and tax agenda.
In April, Sanders took on some of the richest people in the country, declaring that "anybody who thinks we do not have an oligarchy right here in America is sorely mistaken."
"Multibillionaires like Elon Musk, Jeff Bezos, Richard Branson are off taking joyrides on their rocket ships to outer space," he said.
