Commerce Secretary Says U.S. Chamber Must Pass CHIPS Immediately To Alleviate Semiconductor Shortage – .

Commerce Secretary Says U.S. Chamber Must Pass CHIPS Immediately To Alleviate Semiconductor Shortage – .

DETROIT – Commerce Secretary Gina Raimondo on Monday urged the US Chamber to immediately pass legislation supporting US production of semiconductor chips to avoid future supply disruptions and reduce the country’s dependence vis-à-vis China.
Speaking at Motor City, Raimondo used an ongoing global chip shortage that has depleted vehicle inventories and caused gradual shutdowns of U.S. auto factories as evidence that the country needs to relocate its supply chains for critical components such as than semiconductor chips.

“If we want to be competitive globally, we are investing nationally, and in particular in revitalizing the semiconductor industry,” Raimondo said in a speech at the Detroit Economic Club on Monday. She noted that chip assembly in the United States accounts for only 12% of global production, up from 40% in the 1990s.

The U.S. Innovation and Competition Act or USICA was passed by the Senate with bipartisan support in June, but has stalled in the House of Representatives. America’s Helpful Semiconductor Production Incentives Act, or the CHIPS Act, which is part of the broader competition bill, includes $ 52 billion for domestic semiconductor production. -conductors, incentives to invest in new semiconductor manufacturing facilities in the United States and establishes a National Semiconductor Technology Center.

“We need the House to pass the CHIPS law immediately so that we can get down to business,” Raimondo said.

The chip shortage has caused problems across the global auto industry, but Detroit automakers have been hit harder than others. It is expected to cut auto industry revenues by $ 210 billion this year, according to consulting firm AlixPartners.

Automakers such as Ford Motor and General Motors have announced plans to work more closely, or even partner, with semiconductor suppliers to avoid such shortages in the future.

While many believe the worst of the semiconductor shortage is behind the auto industry, the Biden administration has pushed for increased US production of critical components such as chips for the US auto industry and others. sectors.

Raimondo said it is essential to increase domestic production of chips as the auto industry begins to produce more electric vehicles.

The Biden administration has given the industry a sales target of half of new American vehicles to be electric vehicles by 2030. Raimondo called it an “excellent target,” but the “truth is that it is. requires a lot of chips ”.

She said the average electric vehicle has around 2,000 chips, about double the average number of chips in a non-electric car.

Overall, Raimondo used the event to push for passage of the semiconductor bill as well as to tout Biden’s Build Back Better Act, which is in the Senate.

Raimondo said it remained “bullish” on the US economy and US manufacturing industry.


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