The Secretary of Commerce calls on the House of Representatives to "immediately" pass the chip bill to reduce dependence on Chinese components
Nov 30,2021
According to foreign media reports, US Secretary of Commerce Gina Raimondo (Gina Raimondo) on Monday (29th) called on the US House of Representatives to "immediately" pass the US$52 billion "Chip Act" (CHIPS Act), which supports US semiconductor manufacturing, to avoid future supply disruptions in the United States. , And also reduce dependence on Chinese components.
Raimondo's visit to the American Auto City Detroit's UAW met with local politicians, as well as high-level executives such as General Motors, Ford Motor and Stellatis, to discuss chip issues, and strive to obtain funding by the end of December. Raimundo said that the continuing global chip shortage has exhausted car inventories, and has caused the closure of US auto factories one after another, proving that the United States needs to move the supply chain of key components such as semiconductor chips to the country.
Raimundo mentioned in his speech: "If we want to compete globally, we must invest domestically, especially in revitalizing the semiconductor industry." She pointed out that US chip assembly only accounts for 12% of global production, which is lower than in the 1990s. 40%.
The "American Innovation and Competition Act" passed by the U.S. Senate in June this year included the "Chip Act" that allocated US$52 billion to promote semiconductor research, design, and manufacturing, but the bill has not yet been passed by the House of Representatives.
"We need the House of Representatives to immediately pass the "Chip Bill" so that we can proceed to do these things." Raimundo said.
The shortage of chips has caused problems for the global automotive industry, but Detroit automakers are more affected than other automakers. According to consulting firm AlixPartners, this shortage is expected to result in a $210 billion reduction in revenue for the automotive industry this year.
Automakers such as Ford Motor and General Motors have announced plans to work more closely with semiconductor suppliers to avoid such shortages in the future.
Raimondo also said that as the auto industry begins to produce more electric vehicles, it is crucial to increase domestic chip production.
The Biden administration is promoting the development of electric vehicles and has set a goal that electric vehicles will account for half of new car sales in the United States by 2030. Raimondo called this an "excellent goal" but said that "the truth is that a lot of chips are needed."
She mentioned that an electric car has an average of about 2,000 chips, which is about twice the average number of chips in a non-electric car.
Raimondo's visit to the American Auto City Detroit's UAW met with local politicians, as well as high-level executives such as General Motors, Ford Motor and Stellatis, to discuss chip issues, and strive to obtain funding by the end of December. Raimundo said that the continuing global chip shortage has exhausted car inventories, and has caused the closure of US auto factories one after another, proving that the United States needs to move the supply chain of key components such as semiconductor chips to the country.
Raimundo mentioned in his speech: "If we want to compete globally, we must invest domestically, especially in revitalizing the semiconductor industry." She pointed out that US chip assembly only accounts for 12% of global production, which is lower than in the 1990s. 40%.
The "American Innovation and Competition Act" passed by the U.S. Senate in June this year included the "Chip Act" that allocated US$52 billion to promote semiconductor research, design, and manufacturing, but the bill has not yet been passed by the House of Representatives.
"We need the House of Representatives to immediately pass the "Chip Bill" so that we can proceed to do these things." Raimundo said.
The shortage of chips has caused problems for the global automotive industry, but Detroit automakers are more affected than other automakers. According to consulting firm AlixPartners, this shortage is expected to result in a $210 billion reduction in revenue for the automotive industry this year.
Automakers such as Ford Motor and General Motors have announced plans to work more closely with semiconductor suppliers to avoid such shortages in the future.
Raimondo also said that as the auto industry begins to produce more electric vehicles, it is crucial to increase domestic chip production.
The Biden administration is promoting the development of electric vehicles and has set a goal that electric vehicles will account for half of new car sales in the United States by 2030. Raimondo called this an "excellent goal" but said that "the truth is that a lot of chips are needed."
She mentioned that an electric car has an average of about 2,000 chips, which is about twice the average number of chips in a non-electric car.