Democratic Rep. Kathy Manning, D-N. C., scooped up thousands of dollars in semiconductor company stock just one day before voting to pass a bill that provides huge subsidies to the sector, new disclosures show. One of the companies is already planning large-scale investments that are made possible due to the legislation.
Manning and her husband bought up to $30,000 in Micron Technology stocks and up to $95,000 in Nvidia stocks on July 27, according to the new disclosures. The CHIPS Act, passed by Manning the following day, will help expand semiconductor manufacturing facilities in the United States, while giving the industry tens of billions of dollars in subsidies.
Prior to the vote, the legislation received a lot of media attention, particularly regarding stock investments made by Speaker of the House Nancy Pelosi's husband.
I'm proud of my vote to pass this historic investment in American CHIP manufacturing, lower costs, and creating good-paying jobs," Manning tweeted after the vote.
Manning's congressional office told Fox Business that she and her husband have no control over the accounts and that they are in accounts that are entirely controlled by third party managers. Neither Congresswoman ManningCongresswoman Manning nor her husband exercised any control or direction over any transactions executed within the accounts, the office said.
They said that Congresswoman Manning supported the CHIPS Act to maintain semiconductor chip manufacturing in the United States because it creates good-paying American jobs and protects national security.
Micron is planning a large-scale investment after President Biden signed the CHIPS Act Tuesday.
The company said that it would invest $40 billion into building chip manufacturing plants through the end of the decade, which they credited to the legislation.
With the anticipated grants and credits made possible by the CHIPS and Science Act, this investment will enable the world's most advanced memory manufacturing in America, Micron said in a press release.
The investment is the largest in memory manufacturing in the U.S. history and will add up to 40,000 American jobs, the company said.
Nvidia was in the headlines after House Speaker Nancy Pelosi's husband, Paul, bought up to $5 million in the company's stock just weeks before the CHIPS Act vote.
Paul Pelosi dumped the stock just before the vote due to the backlash. Pelosi said Paul has never made any stock purchases based on information she gave him.
Rep. Elaine Luria, D-Va., received a lot of flak for holding up to $25 million in Nvidia investments, which she purchased a decade ago while not in Congress. Virginia State Sen. Jen Kiggans, her Republican challenger, called for her to drop the stock.
Kiggans said that Luria's investment is an example of how she will put her bottom line ahead of her constituents' well-being, and that it is unethical and self-serving. Nvidia designs chips while Micron makes chips. The increased federal support to manufacturers could help Nvidia grow as a result of the CHIPS Act, according to InvestorPlace.
Manning's stock actions have been subject to scrutiny in the past. Sludge reported earlier this year that the North Carolina Democrat and her husband failed to disclose dozens of stock transactions last year within the 45 day time frame required by the STOCK Act.