Senator Gary Peters (MI) and Congresswoman Debbie Dingell (MI-12) recently welcomed U.S. Secretary of Commerce Gina Raimondo at the UAW Region 1A in Taylor, Michigan for a panel on the current semiconductor chip shortage in the United States.
The discussion, which focused on the effects of the chip shortage on Michigan and its auto workers, emphasized the need for "strong funding and collaboration" to improve domestic semiconductor production, according to a press release from the U.S Department of Commerce.
“This Roundtable had been in the making for months because Michigan is ground zero for where the chip shortage is devastating auto workers and auto companies. I’ve talked to the President, my colleagues in Congress, and many cabinet members about this, Secretary Raimondo recognizes the severity of this crisis,” Rep. Dingell said in the release “We must take this head on, especially in the state that put the world on wheels.”
Due to the current semiconductor chip shortage, automakers in the United States have been pushed to reduce production, affecting employees, suppliers, and customers, the release said.
“The semiconductor chip shortage has hurt our economy and cost jobs and highlights why we must shore up our supply chains and support domestic manufacturing,” Sen. Peters said in the release. “To maintain our global leadership and strengthen our economic competitiveness, we must counter the actions of competitors like the Chinese government, which is aggressively investing in the research and development of new technologies."
Currently, the Alliance for Auto Innovation estimates that if the shortage continues at its current pace, the U.S. may produce 1.28 million fewer vehicles in 2021, the release said. In 1990, the United States produced 37% of the world's chips; currently, it produces just around 12%.
“The United States was once a leader in the production of semiconductor chips, which power our smartphones, medical equipment, and automobiles," Secretary Raimondo said in the release. "But today, we account for only 12% of global production and produce zero percent of the most advanced chips.”
