Whitmer, others governors, ask Congress to pass bill to boost semiconductor chip production in U.S.

Explainer Worsening Chip Shortage
Posted at 8:37 AM, Nov 10, 2021

(WXYZ) — Michigan Gov. Gretchen Whitmer and governors of several other states are calling on U.S. Congress to pass legislation that will boost semiconductor chip production amid the ongoing shortage.

Whitmer was joined by a bipartisan group of governors from Wisconsin, North Carolina, Kentucky, Pennsylvania, Alabama, Kansas, Illinois and California.

They are urging Congress to pass, with full funding, the Creating Helpful Incentives for Production of Semiconductors for America Act (CHIPS).

It comes amid the ongoing shortage that has left vehicles in Michigan and several other states stuck on lots without semiconductors.

The act, the governors say, would turbocharge the production of semiconductors in the U.S., including the "mature node" chips that are used in vehicles.

“The global auto chip shortage has hit Michigan and states across the country hard, idling plants and slowing production, threatening thousands of auto-related jobs up and down the supply chain,” Whitmer said in a release. “With no end in sight, it’s clear we have no time to lose if we’re going to protect jobs and maintain our competitive edge."

The bipartisan U.S. Innovation and Competition Act, passed in the Senate, including $52 billion in funding for the CHIPS Act, according to the governor's office. $2 billion would be dedicated to incentivizing production of the "mature node" semiconductors.

“The CHIPS Act incentive provisions have garnered broad, bipartisan support, as reflected in the Senate, which passed USICA earlier this year by a vote of 68-32. While we understand that the House of Representatives has its own priorities with respect to the policies and programs included in USICA, we hope the two chambers will now come together quickly to find common ground with respect to this legislation, including full funding for the CHIPS Act re-shoring provisions, as soon as possible,” the governors wrote in the letter.

Production at plants around the country has been halted at different times throughout the summer and fall due to the chip shortage, and there is no sign of the shortage slowing down.

Multistate Letter Re CHIPS Act Funding - Nov 2021 by WXYZ-TV Channel 7 Detroit on Scribd