1 00:00:02,520 --> 00:00:07,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,360 --> 00:00:09,920 Speaker 2: It's a pleasure to have the senior senator from Texas 3 00:00:09,920 --> 00:00:12,840 Speaker 2: with US. Senator John Cornyn is joining us now live 4 00:00:12,920 --> 00:00:16,040 Speaker 2: from Capitol Hill. Senator, welcome back to Bloomberg TV and Radio. 5 00:00:16,079 --> 00:00:18,600 Speaker 2: I'd like to start with the economy and the news 6 00:00:18,680 --> 00:00:21,160 Speaker 2: on the semiconductor space that is getting a lot of 7 00:00:21,200 --> 00:00:23,360 Speaker 2: talk and move in markets around here before we get 8 00:00:23,360 --> 00:00:24,959 Speaker 2: to some of the other issues that we'd love to 9 00:00:25,000 --> 00:00:28,240 Speaker 2: ask you about. In Vidia investing five billion dollars in 10 00:00:28,320 --> 00:00:32,800 Speaker 2: Intel following the President's announcement of a federal stake in 11 00:00:32,880 --> 00:00:35,839 Speaker 2: the chip maker. As well the deals, the President announced 12 00:00:35,840 --> 00:00:39,080 Speaker 2: fifteen percent of China sales from Nvidia and AMD to 13 00:00:39,120 --> 00:00:42,159 Speaker 2: go to the US government. I'm wondering your thoughts on this. 14 00:00:42,280 --> 00:00:45,840 Speaker 2: Is this the best move to shore up domestic semiconductor 15 00:00:45,920 --> 00:00:49,839 Speaker 2: manufacturing or does the Conservative Republican you feel like this 16 00:00:49,960 --> 00:00:53,360 Speaker 2: is state run capitalism. 17 00:00:53,560 --> 00:00:56,600 Speaker 3: Well, as you know, we made a major investment in 18 00:00:56,720 --> 00:01:02,640 Speaker 3: bringing back to our shores American advanced semiconductor manufacturing since 19 00:01:02,680 --> 00:01:05,040 Speaker 3: we only were doing a roughly twelve percent of it, 20 00:01:05,440 --> 00:01:08,920 Speaker 3: and I think many people, including me, recognize this is 21 00:01:08,959 --> 00:01:13,760 Speaker 3: a national security risk when so much it was housed 22 00:01:13,880 --> 00:01:21,039 Speaker 3: in South Korea and Taiwan, and so having INTEL manufacturing 23 00:01:21,080 --> 00:01:24,720 Speaker 3: advanced semiconductors in the United States is a positive thing. 24 00:01:25,240 --> 00:01:28,240 Speaker 3: But of course we've all watched all the problems that 25 00:01:28,280 --> 00:01:32,680 Speaker 3: they've had with there now with a new CEO, and 26 00:01:33,040 --> 00:01:36,480 Speaker 3: they are struggling, it appears, but if you read the 27 00:01:36,520 --> 00:01:41,640 Speaker 3: history of semiconductors, this is nothing new. It's a very 28 00:01:41,680 --> 00:01:45,600 Speaker 3: tough competitive field. But I have no objection. In fact, 29 00:01:45,640 --> 00:01:49,000 Speaker 3: I'm glad to see the video. See that as an 30 00:01:49,040 --> 00:01:50,480 Speaker 3: investment of good business. 31 00:01:50,240 --> 00:01:54,840 Speaker 4: Investment, Senator Cornyan the ten percent stake. However, the US 32 00:01:54,920 --> 00:01:58,200 Speaker 4: government now has an INTEL, as you mentioned, has been 33 00:01:58,240 --> 00:02:00,680 Speaker 4: touted as a measure of nationals cequy gurity. There's other 34 00:02:00,680 --> 00:02:03,360 Speaker 4: areas that are tout as measures of national security, including 35 00:02:03,880 --> 00:02:07,280 Speaker 4: energy independence, something driven by your state and others in 36 00:02:07,320 --> 00:02:10,160 Speaker 4: the South. Does a government need to be taking stakes 37 00:02:10,400 --> 00:02:13,800 Speaker 4: in things like energy companies and specifically oil companies. 38 00:02:15,080 --> 00:02:16,040 Speaker 1: No, I don't think so. 39 00:02:17,680 --> 00:02:20,840 Speaker 3: You know, unfortunately, we do find ourselves vulnerable to the 40 00:02:20,880 --> 00:02:25,799 Speaker 3: supply chains on things like critical minerals and rare earth elements, 41 00:02:25,840 --> 00:02:30,880 Speaker 3: since China processes ninety percent of those and uses that 42 00:02:30,960 --> 00:02:34,360 Speaker 3: as leverage against US and of course, these rare earth 43 00:02:34,400 --> 00:02:37,840 Speaker 3: elements in particular are essential to make the magnets that 44 00:02:37,919 --> 00:02:42,200 Speaker 3: go on virtually every electric motor that runs, and they 45 00:02:42,240 --> 00:02:45,680 Speaker 3: really have us at a tremendous disadvantage, and we just 46 00:02:46,160 --> 00:02:52,200 Speaker 3: I think have not anticipated this in among other things, 47 00:02:52,480 --> 00:02:56,760 Speaker 3: but it's emblematic of the strategy, long term strategy. China 48 00:02:56,760 --> 00:03:01,160 Speaker 3: has had to make the United States dependent on on them. 49 00:03:01,440 --> 00:03:05,400 Speaker 1: For exports and demonstrates that they have. 50 00:03:05,600 --> 00:03:10,480 Speaker 3: A full across the board strategy to try to undermine 51 00:03:10,600 --> 00:03:16,280 Speaker 3: American investment and to maintain that virtual monopoly. So this 52 00:03:16,480 --> 00:03:20,680 Speaker 3: is a this is a pretty worrisome situation. But I 53 00:03:20,720 --> 00:03:25,040 Speaker 3: would say in the energy sector we are doing very well. 54 00:03:25,600 --> 00:03:27,840 Speaker 3: We just needed some of the regulators to take their 55 00:03:27,919 --> 00:03:31,399 Speaker 3: boot off the neck of some of the businesses here 56 00:03:31,440 --> 00:03:34,800 Speaker 3: in this country and they will flourish. 57 00:03:35,120 --> 00:03:37,520 Speaker 2: Senator Corny, and I'd love to ask you what's happening 58 00:03:37,600 --> 00:03:40,040 Speaker 2: in terms of government funding or of course, staring down 59 00:03:40,320 --> 00:03:43,600 Speaker 2: at September thirtieth deadline, can you confirm that the Senate 60 00:03:43,680 --> 00:03:46,600 Speaker 2: is leaving today? That's what we're hearing at Bloomberg, as 61 00:03:46,600 --> 00:03:49,680 Speaker 2: opposed to staying around town for the weekend to maybe 62 00:03:49,720 --> 00:03:52,000 Speaker 2: hammer out a deal or get a vote on a CR. 63 00:03:52,080 --> 00:03:54,680 Speaker 1: What's the latest on this, Well. 64 00:03:54,480 --> 00:03:57,040 Speaker 3: Of course, the deadline isn't until the end of the month, 65 00:03:57,160 --> 00:03:59,680 Speaker 3: so we still have we still have a little more 66 00:03:59,720 --> 00:04:02,720 Speaker 3: than a But the fact of the matter is, right 67 00:04:02,760 --> 00:04:07,760 Speaker 3: now Democrats are making a demand which is completely unreasonable. 68 00:04:07,800 --> 00:04:11,160 Speaker 3: They want us to deal with something more than keeping 69 00:04:11,200 --> 00:04:14,080 Speaker 3: the lights on, keeping the government open, which is what 70 00:04:14,160 --> 00:04:17,720 Speaker 3: a continuing resolution is, as you know, until November the twentieth, 71 00:04:18,040 --> 00:04:20,920 Speaker 3: and they wanted to use this as leverage. A potential 72 00:04:20,960 --> 00:04:25,200 Speaker 3: government shutdown is leverage to extract trillions of dollars of 73 00:04:25,200 --> 00:04:28,240 Speaker 3: additional spending in terms of healthcare subsidies. 74 00:04:28,320 --> 00:04:31,320 Speaker 1: We're happy to have that conversation, but not right. 75 00:04:31,160 --> 00:04:35,920 Speaker 2: Now understood, are you are you heading home tonight? Then 76 00:04:35,960 --> 00:04:38,960 Speaker 2: will you come back next weeks? Has Senator Thune given 77 00:04:39,000 --> 00:04:40,159 Speaker 2: you directions on that front? 78 00:04:41,400 --> 00:04:42,840 Speaker 1: I think that's still up in the air. 79 00:04:43,400 --> 00:04:45,880 Speaker 3: First thing we need to do this afternoon is confirmed 80 00:04:45,920 --> 00:04:51,960 Speaker 3: about forty five nominees to cabinet sub cabinet positions that 81 00:04:52,240 --> 00:04:55,000 Speaker 3: the Democrats have been holy hostage. But I know those 82 00:04:55,040 --> 00:04:58,320 Speaker 3: discussions continue, but no resolution yet. 83 00:05:00,000 --> 00:05:02,000 Speaker 2: Need to run, Senator, But you've seen this movie a 84 00:05:02,000 --> 00:05:03,520 Speaker 2: couple of times. What's your gut tell you, are we 85 00:05:03,560 --> 00:05:05,120 Speaker 2: going to shut down at the end of the month. 86 00:05:06,600 --> 00:05:09,720 Speaker 3: You know, it's a lot of unnecessary drama, And yes, 87 00:05:09,800 --> 00:05:14,320 Speaker 3: I have seen this movie before, and it's embarrassing, frankly, 88 00:05:14,360 --> 00:05:17,440 Speaker 3: because the government and the Congress ought to be able 89 00:05:17,440 --> 00:05:19,200 Speaker 3: to figure out how to keep the lights on, how 90 00:05:19,240 --> 00:05:22,400 Speaker 3: to keep government funded, but unfortunately things have become so 91 00:05:22,560 --> 00:05:26,279 Speaker 3: polarized and so partisan that it's hard to get some 92 00:05:26,440 --> 00:05:28,360 Speaker 3: consensus on something as simple as that. 93 00:05:29,680 --> 00:05:33,120 Speaker 1: You don't sound that confident. Well, I don't. 94 00:05:33,080 --> 00:05:36,719 Speaker 3: Expect to shut down, but right now the demands that 95 00:05:36,760 --> 00:05:39,960 Speaker 3: are being made, I think are unrealistic and we're simply 96 00:05:40,000 --> 00:05:40,840 Speaker 3: not going to go there. 97 00:05:42,680 --> 00:05:45,840 Speaker 2: Senator John Cornyn, Republican from Texas, we thank you for 98 00:05:45,880 --> 00:05:47,320 Speaker 2: being with us to see us when we have more 99 00:05:47,320 --> 00:05:48,799 Speaker 2: time on Bluebird TV and radio.