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WASHINGTON DC, August 2, 2021 ~ Congressman Dan Kildee and Congresswoman Debbie Dingell are pushing a bill to spend $2 billion dollars on emergency funding for domestic semiconductor manufacturing. The bill was introduced July 28 by Dingell.
The global shortage has caused shutdowns at auto plants, and has caused many short term layoffs in Michigan. According to AlixPartners, the production blow is threatening to drop global auto production by nearly 4 million vehicles globally by the end of 2021, costing nearly $110 billion industry wide.
“The market is distorted right now by low cost foreign produced material. [Chipmakers] need incentives in order to get private industry here to see the benefit of making the investment in the production capacity,” said Kildee to 760 WJR’s Kevin Dietz. “Congress has to act in order to provide for that.”
August 2, 2021 ~ Congressman Dan Kildee tells Kevin Dietz about his support for a bill to spend $2 billion dollars on emergency funding for domestic semiconductor manufacturing.
Funding under the bill would chip manufacturing specifically for types of chips to be used in consumer and commercial vehicles.
United Auto Workers (UAW) Spokesman Brian Rothenberg has stated that the UAW supports the legislation.
Nearly 20 years ago, the United States produced more than one-third of semiconductor chips globally. Now only 12% are made in the U.S., and companies have become increasingly reliant on China and other Asian countries for these important components.
The pandemic, increased chip demand, fires at a semiconductor facility in Japan, and droughts in Taiwan were all factors in the shortage we are currently facing.
While this, a group of five Republicans and 12 Democrats are joined together to push House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy to move the house to fund domestic semiconductor production.
“Let’s supply the American auto industry with what it needs, and try to avoid what could be a really tough period if we don’t address it now.”