The US will have 10 more semiconductor chip factories

US Commerce Secretary Gina Raimondo said the $52 billion grant for semiconductor research and production could help create seven to 10 new chip factories in the US.

The global shortage of semiconductor chips has severely affected auto manufacturers and many other industries.

At an event outside the factory of chip company Micron Technology that just took place, Minister Raimondo said that the US government’s $ 52 billion in funding will lead to the influx of money. capital More than $150 billion is invested in chip research and manufacturing, including funding from state, federal, and private companies.

“We just need federal money… to open up private capital,” Minister Raimondo said. “It could be 7, maybe 8, maybe 9, or 10 new chip factories in the US by the time we’re done,” Ms Raimondo added.

Secretary Raimondo said she hoped states would compete for federal funding for chip factories and that the US Commerce Department would adopt a transparent process for funding.

The global shortage of semiconductor chips, due to the high demand for electronic equipment during the pandemic, has severely affected car manufacturers and many other industries.

Major automakers such as General Motors, Ford, and Toyota were forced to cut production this year due to a shortage of semiconductor chips. Associated Reuters cited Ford’s announcement last month that said chip shortages could cut production by half in the second quarter of 2021.

Democratic Senator Mark Warner thinks US funding could create seven to 10 new chip factories. However, “this will not OK resolved overnight. It will take years for the Commerce Department to make these investments,” said Sen. Mark Warner.

Last week, Democratic Leader in the US Senate Chuck Schumer announced a revised bipartisan bill that would spend $52 billion on US semiconductor research and manufacturing over the next five years.

Supporters of the grant argue that the United States held a 37 percent share of the semiconductor and microelectronics manufacturing market in 1990, but that market share now only 12% left.

According to Reuters, the bill includes $39 billion in incentives research and development (R&D), and semiconductor manufacturing, and $10.5 billion to implement programs, including the National Semiconductor Technology Center, the National Advanced Packaging Fabrication Program, and other R&D programs.

Republican Senator John Cornyn proposes removing the current wage regulations from the bill, and wants a vote on this amendment because he thinks the pay issue is having a bad impact. to the Republican consensus.

“I don’t expect this to stop us from getting what we want,” Senator John Cornyn said of wages to Reuters. “That’s important, but I think passing the Chips for America bill is essential,” added John Cornyn.

Senator John Cornyn said that China has left the US with no choice but to make such investment. “This is a vulnerability that we have to fix,” Mr Cornyn said.