U.S. commerce chief advocates for chip financing in Michigan – .

U.S. commerce chief advocates for chip financing in Michigan – .

TAYLOR, Mich., Nov. 29 (Reuters) – U.S. Commerce Secretary Gina Raimondo on Monday asked Congress to approve $ 52 billion to expand semiconductor manufacturing in the United States during a visit to Michigan where she heard about the struggles of the automotive industry in the face of the current chip supply crisis.

“The reality is Michigan will lose jobs… if we don’t increase our supply of chips,” Raimondo said.

She visited a local United Auto Workers hall near Detroit and met with Michigan politicians and officials from General Motors Co (GM.N), Ford Motor (FN) and Stellantis, Chrysler’s parent company, who were looking to obtain financing before the end of December.

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The Big Three of Detroit automakers and other global automakers have been forced to cut production and even make some vehicles without features like heated seats or digital speedometers due to the semiconductor shortage.

On November 17, House of Representatives and Senate leaders said they would negotiate a final deal on a bill to boost U.S. technological competitiveness with China and semiconductor manufacturing. . Legislation approved by the Senate would grant $ 52 billion for semiconductor manufacturing and authorize $ 190 billion to bolster U.S. technology and research.

Stellantis executive Marlo Vitous said the company is working hard to get chips to make vehicles. “It’s pure grain right now – the fight for the parts we need. “

UAW President Ray Curry said the chip shortage “at the grassroots… is not for American jobs off the coast. Bring those “semiconductor jobs back to the United States.”

Demand for auto chips will continue to increase as automakers switch to electric vehicles, which use twice as many chips as gasoline models. Businesses say the crisis will last at least a year.

Michigan lawmakers have posed the problem in geopolitical terms.

“We’re not going to let China kick our ass. We’re going to kick China’s ass, ”Representative Debbie Dingell said at the forum, saying it was crucial for American workers that Congress increase chip funding.

The Chinese Embassy in Washington did not immediately respond to a request for comment.

“We need the House to pass its version of the CHIPS Act,” Raimondo said in another appearance at the Detroit Economic Club.

“Commerce pursues strategies such as ‘nearshoring’ and ‘friendshoring’, so that like-minded partners are integrated into our supply chains,” Raimondo added. “As we rebuild our supply chains, we cannot depend on foreign countries that do not share our values ​​for our critical chip components. “

Last week, Samsung Electronics (005930.KS) announced that it had selected Taylor, Texas, as the location for a new $ 17 billion plant to manufacture advanced chips.[nL4N2SE06N]

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Reporting by David Shepardson; Editing by Lincoln Feast and Leslie Adler

Our Standards: Thomson Reuters Trust Principles.


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