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Proposed $52 Billion In Funding Could Help Build At Least 7 U.S. Chip Plants

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In recent weeks, the semiconductor chip shortage has only worsened, and it’s affecting Ford more than any other automaker. The Blue Oval continues to cut more and more vehicles from its production schedule each week, reaching a whopping 93,000 units last week alone. The obvious answer to this problem is increased domestic chip production, and a newly-introduced bill in the U.S. Senate aims to create between 7-10 U.S. chip plants with $52 billion in government funding, according to Reuters.

“We just need the federal money to unlock private capital,” said U.S. Commerce Secretary Gina Raimondo. “It could be seven, could be eight, could be nine, could be 10 new factories in America by the time we’re done.” U.S. Senator Mark Warner echoed that prediction, but warned that this is no short-term solution to the current chip shortage. “This is not going to solve this overnight,” Warner said. “It will take years for the Commerce Department to make these investments.”

Raimondo indicated that the government’s $52 billion investment in chip research and production could trigger upwards of $150 billion in additional investments from private firms and both state and federal governments. States that wish to house newly proposed U.S. chip plants will compete for the federal funds.

Today, the U.S. accounts for just 12 percent of total semiconductor chip production across the globe, compared to 37 percent in 1990. In addition to politicians, several automakers and lobby groups – including Ford – have called for increased domestic chip production in recent months.

Ford recently announced that it may lose one-half of its total output in Q2 as a result of the chip shortage. Experts believe that globally, automakers stand to lose nearly three million units of production and $110 billion in 2021 as a direct result of the ongoing issue, which could last for months or even years.

We’ll have much more on the chip shortage soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

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Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. GreggT

    Unless Intel does what they have been doing in the past with their obscene profits, buy back stock instead of investing in R&D putting then 2-3 years behind in technology.

    Reply
  2. Mark B

    Ahh, just like the good ‘ole days back in the ‘50’s, ‘60’s when government kickstarted technologies which eventually benefited industry!

    I believe many of our competitors are still doing this. Sad that it took a supply chain disaster to get folks off their asses!

    Reply
    1. royl

      I remember when Trump wanted manufacturing brought back to the USA, to include pharmaceuticals (and the chems necessary to produce them), the wokes were against it, now, the wokes seem to be for it? Is the wooohooo virus vaccine causing the wokes to have a 180 degree change in their way of thinking?? What other questionable (crazy) stances are they suddenly changing? I know the virus being mfg in woooohan was considered ridiculous idea, again when Trump brought it forward, now, all of a sudden-bang, maybe it’s true. What’s going on….are the wokes having mental break downs?

      Reply
  3. Lee

    This sounds like another version of the Obama/Biden bailouts of Government Motors and Chrysler. Put simply, tax-payer funded.

    Reply
    1. royl

      Lee, you’ve hit the nail on the head! If, Big IF joe and hunter wanted to have chips made in the USA, rather than spending 100’s of billions of dollars ( that we don’t have) they would offer Big Tax Breaks to corps to move production back to the US, or to the US as would be the case. I smell another solendra-a small group of dems will be getting rich, while the American Tax payer will foot the bill, once again. I wonder who will be overseeing the spending of the the money? You can bet huge bonus money will be flowing to those execs that are also big donners to joe and hunter….sad

      Reply
  4. scorpionking0102

    Moving companies and factories back to the homeland would be a smart move not only monetary, but also strategically for our companies defense. I’m a believer in if something as complex as a chip is made in a country who is already at odds with our beliefs, then they can be manufactured to shut down whatever they’re installed in bringing a country to a halt or used to data mine our everyday activities.
    Also, if China can build a fully operational hospital in two weeks, as we have seen during the Covid outbreak, so can the US. Only being they have cheap labor and we don’t.

    Reply
    1. royl

      The chinese “fully operational” hospital wasn’t one the same level as many built (put up) in the US during the same time, the Shepard’s Purse hospital, put up in NYCity Central Park, is world class, not just in equipment, but doctors and staff. The chinese were able to muster a large number of welders to seal people into their apartments etc., and were good regarding body disposal. Their greatest strength as been how well they lie, cheat and steal, maybe that’s why joe and hunter love them so much!

      Reply
  5. Mike says..

    Doing all the things the prior administration blustered about and pontificated ‘ad nauseum’ are getting done. Finally the U.S is beginning to have some ‘creds’ in the real world most of us actually live in. Any effort that stabilizes the US automotive industry is essential to the well being of so many Americans, not just the indolent few that want to tear everything down.

    Reply
    1. royl

      What? You must have missed the last 5 years, “doing all the things the prior admin…are getting done”, such as building the wall? Such as, lowering taxes? I think not. The list goes on and on. The worst part of course are those things that fools and politicos were against, at a cost to the country, for political points, suddenly seem like they may be for. It was very long ago joe and hunter took credit for the vaccine!!! No, you statement is revisionist history, wrong from the start. Yes, having an American (made in America) auto industry is vital to our country, I wish ford would build all the vehicles they sell under the ford logo in the U.S. here in the U.S.. Buying fords build outside the U.S. does not help our country at all. The bronco sport (BS) for example, should be built in the U.S., and should be made with American sourced components-not chinese made transmissions, as an example.

      Reply
  6. GreggT

    Guys let’s leave off the partisan BS. This forum is about Ford and our trucks. Neither party has anything to be proud off in terms of allowing our companies to move off shore in search of cheaper labor, less regulations, and higher profits.

    Reply
    1. royl

      Actually, Trump was 100% against the moving American Jobs out of the USA, he did more to move jobs back than anyone in modern history. We can be proud of his efforts. We can be ashamed of those that allow it, and those that do not fight to keep it from happening. Regarding chinese made parts found in so many fords, I’m sure hunter would be against having them sourced in the states….

      Reply
  7. royl

    I am thankful Trump worked so hard at eliminating b.s. regulations, in states such as CA, where they have so many regulations on virtually everything (but living in the streets, using drugs etc) over 80,000 businesses have left. There is a new chip plant coming on line 2023-2024 in ARIZONA, not CA-go figure. With the economic base leaving (along with population) CA, in order to keep up the insane social programs, I guess they’ll just raise taxes a little more to “cover” the loss, Remember, CA has over 13% State income tax! How does this effect cars and trucks, less money, fewer sales. those that earn a living, thus have money, are moving to other states, perhaps different types of vehicles would be better suited in those locations. If I were moving to NY city, a F250 may not be the best choice for a daily driver. Believe it or not, there are still some people in NY that have and drive cars….

    Reply
  8. Ron

    Where was this “help” 20-30 yrs ago, I worked in the semiconductor industry and slowly watched everything go overseas because it was so expensive to produce in the US.

    Reply
    1. royl

      Right on! The “let’s continue to regulate, and regulate some more” crowd has a very strong foothold in DC. This guarantees lifetime govt. jobs, at our expense, and drives jobs out of the US. I can only imagine how many people in the US would have died from the woohan virus, if Trump did not waive all the Over-burdensome regulations in regards to the development of a vaccine! More govt. =less freedom, less $$$$ and a lower standard of living for all.

      Reply

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