The semiconductor chip shortage continues to negatively affect automotive production and is projected to cause a $210 billion dollar loss industry-wide by the end of 2021. With no real end to this crisis in sight, the automotive industry and tech companies have been calling for more U.S.-based chip production, while all major chipmakers have agreed to the Biden administration’s request to share information concerning supply levels. Back in April, the administration also announced proposed legislation that would help fund the semiconductor industry as part of Biden’s infrastructure package. Now, nine U.S. governors have come out in support of what is now known as the CHIPS Act, according to Bloomberg.
The nine governors – Gretchen Whitmer of Michigan, J.B. Pritzker of Illinois, Tony Evers of Wisconsin, Roy Cooper of North Carolina, Andy Beshear of Kentucky, Tom Wolf of Pennsylvania, Kay Ivey of Alabama, Laura Kelly from Kansas, and Gavin Newsom of California, sent a letter to a group of top congressional leaders urging them to move the CHIPS Act forward, which would provide $52 billion in aid to chipmakers to help resolve the current shortage and increase production in the U.S.
“There is no question that our nation’s automotive manufacturing industry – more than any
other sector – has been hit hardest by the global semiconductor shortage,” Whitmer said in the letter. “Production at auto plants across the country has been idled, impacting more than 575,000 auto-related American jobs.”
The legislation that has become the CHIPS Act was previously included in a broader bill introduced in the Senate back in June, but it later stalled in the House of Representatives and has since taken a back seat to the broader infrastructure plan. A number of companies are reportedly waiting on the bill to be approved by the end of the year so that plans to build chip manufacturing plants in the U.S. can move forward.
We’ll have more on this legislation as soon as it’s available, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.
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