Commerce Secretary Gina Raimondo, concerned about future supply interruptions, has urged the House of Representatives to immediately pass legislation supporting U.S. production of semiconductor chips.
Raimondo, speaking in Detroit recently, said the ongoing global shortage of chips has led to depleted vehicle inventories and caused rolling shutdowns of U.S. auto plants. The shortage has highlighted the need to produce critical components onshore and lower the country’s dependence on parts from China.
"I urge the House and Senate to reach an agreement quickly on the U.S. Innovation and Competition Act, which includes $52 billion for domestic semiconductor production," Raimondo said at the Nov. 29 event. "Doing so will not only make us more competitive on the world stage but will translate into more good-paying jobs for Detroit, the state of Michigan and the entire country.”
There is an ongoing global shortage of semiconductor chips, CNBC reports. The shortage is expected to cost automakers $210 billion in revenue due to showdowns and low inventory.
The United States Innovation and Competition Act (USIC) includes, among its many provisions, $52 billion to support the domestic semiconductor industry. The Senate passed the act in June; the House has not yet acted on the bill.
“The U.S. Innovation and Competition Act would help position the United States a step ahead of China in science and technology,” Commerce Committee Ranking Member Roger Wicker said after the Senate passed the act. “The legislation includes numerous bills and amendments that I sponsored to ensure all areas of the country receive a fair opportunity to participate in federally funded R&D and to protect American research and intellectual property from foreign theft.”
Senate Majority Leader Chuck Schumer (D-NY) and Speaker of the House Nancy Pelosi (D-CA) announced they are continuing negotiations on finalizing the USIC act. "Therefore, the House and Senate will immediately begin a bipartisan process of reconciling the two chambers’ legislative proposals so that we can deliver a final piece of legislation to the President’s desk as soon as possible,” they said in a joint release issued Nov. 17.
Commerce Committee Chair Maria Cantwell issued a statement in June after the Senate passed the legislation.
“America is at our best when we are innovating, competing, and exploring, she said in the June 8 release from the committee. "Today’s Senate vote is a major step towards building the R&D capacity we need to seize the promise of an Information Age. This bipartisan vote is a huge boost to our innovation ecosystem that will help us keep pace with our competitors.”
