LANSING, Mich. (WLNS) – The auto industry is just one of many impacted by a shortage of semiconductor chips, that’s why lawmakers are now working on a plan to bring chip production to the United States.
On Tuesday, the U.S. Senate was able to get enough bipartisan support to move the Chips for America Act forward. The bill offers an investment tax credit to encourage semiconductor companies to boost manufacturing in the U.S.
“This is gonna lower cost for consumers. It’s gonna bring jobs home, and we’re anxious to bring those to Michigan and it’s gonna strengthen our national security. That is the bottom line,” said Sen. Debbie Stabenow.
Semiconductor chips are used in many products including cell phones, medical equipment and of course the cars you see sitting in GM and Ford parking lots, unable to hit the road.
“We know there are cars now in parking lots, across our state that are all fully built, uh, but need chips, in order to actually deliver, be delivered to the dealership. We have to have that production and we have to have it in the United States,” said Sen. Gary Peters.
The Biden administration says the need to manufacture semiconductor chips in America is urgent in order to prevent shortages and further inflation.
“America invented semiconductors, but over the years we let the manufacturing of those semiconductors go overseas,” Biden said.
The Chips for America Act also proposes a $52 billion investment in domestic production.
“We just heard this bill is going to supercharge efforts to make semiconductors, those tiny chips, the size of the fingerprint – some are larger, but the size of a fingerprint, and power our everyday lives in America. They’re the building blocks for the modern economy,” Biden said.
House Speaker Nancy Pelosi says she plans to move quickly on the bill once it arrives in the House, with the President also wanting to sign the bill as soon as possible.