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It's a pleasure to have the senior senator from Texas with US. Senator John Cornyn is joining us now live from Capitol Hill. Senator, welcome back to Bloomberg TV and Radio. I'd like to start with the economy and the news on the semiconductor space that is getting a lot of talk and move in markets around here before we get to some of the other issues that we'd love to ask you about. In Vidia investing five billion dollars in Intel following the President's announcement of a federal stake in
the chip maker. As well the deals, the President announced fifteen percent of China sales from Nvidia and AMD to go to the US government. I'm wondering your thoughts on this. Is this the best move to shore up domestic semiconductor manufacturing or does the Conservative Republican you feel like this is state run capitalism.
Well, as you know, we made a major investment in bringing back to our shores American advanced semiconductor manufacturing since we only were doing a roughly twelve percent of it, and I think many people, including me, recognize this is a national security risk when so much it was housed in South Korea and Taiwan, and so having INTEL manufacturing advanced semiconductors in the United States is a positive thing.
But of course we've all watched all the problems that they've had with there now with a new CEO, and they are struggling, it appears, but if you read the history of semiconductors, this is nothing new. It's a very tough competitive field. But I have no objection. In fact, I'm glad to see the video. See that as an investment of good business.
Investment, Senator Cornyan the ten percent stake. However, the US government now has an INTEL, as you mentioned, has been touted as a measure of nationals cequy gurity. There's other areas that are tout as measures of national security, including energy independence, something driven by your state and others in the South. Does a government need to be taking stakes in things like energy companies and specifically oil companies.
No, I don't think so.
You know, unfortunately, we do find ourselves vulnerable to the supply chains on things like critical minerals and rare earth elements, since China processes ninety percent of those and uses that as leverage against US and of course, these rare earth elements in particular are essential to make the magnets that go on virtually every electric motor that runs, and they really have us at a tremendous disadvantage, and we just I think have not anticipated this in among other things,
but it's emblematic of the strategy, long term strategy. China has had to make the United States dependent on on them.
For exports and demonstrates that they have.
A full across the board strategy to try to undermine American investment and to maintain that virtual monopoly. So this is a this is a pretty worrisome situation. But I would say in the energy sector we are doing very well. We just needed some of the regulators to take their boot off the neck of some of the businesses here in this country and they will flourish.
Senator Corny, and I'd love to ask you what's happening in terms of government funding or of course, staring down at September thirtieth deadline, can you confirm that the Senate is leaving today? That's what we're hearing at Bloomberg, as opposed to staying around town for the weekend to maybe hammer out a deal or get a vote on a CR.
What's the latest on this, Well.
Of course, the deadline isn't until the end of the month, so we still have we still have a little more than a But the fact of the matter is, right now Democrats are making a demand which is completely unreasonable. They want us to deal with something more than keeping the lights on, keeping the government open, which is what a continuing resolution is, as you know, until November the twentieth,
and they wanted to use this as leverage. A potential government shutdown is leverage to extract trillions of dollars of additional spending in terms of healthcare subsidies.
We're happy to have that conversation, but not right.
Now understood, are you are you heading home tonight? Then will you come back next weeks? Has Senator Thune given you directions on that front?
I think that's still up in the air.
First thing we need to do this afternoon is confirmed about forty five nominees to cabinet sub cabinet positions that the Democrats have been holy hostage. But I know those discussions continue, but no resolution yet.
Need to run, Senator, But you've seen this movie a couple of times. What's your gut tell you, are we going to shut down at the end of the month.
You know, it's a lot of unnecessary drama, And yes, I have seen this movie before, and it's embarrassing, frankly, because the government and the Congress ought to be able to figure out how to keep the lights on, how to keep government funded, but unfortunately things have become so polarized and so partisan that it's hard to get some consensus on something as simple as that.
You don't sound that confident. Well, I don't.
Expect to shut down, but right now the demands that are being made, I think are unrealistic and we're simply not going to go there.
Senator John Cornyn, Republican from Texas, we thank you for being with us to see us when we have more time on Bluebird TV and radio.