© Reuters. FILE PHOTO: Newly manufactured Ford Motor Co. 2021 F-150 pick-up vans are seen ready for lacking components in Dearborn, Michigan, U.S., March 29, 2021. REUTERS/Rebecca Prepare dinner/File Photograph
By Ben Klayman and Stephen Nellis
(Reuters) – A bipartisan group of governors from 9 states despatched a letter on Wednesday to U.S. lawmakers urging them to cross subsidies for semiconductor factories that will produce chips for automobiles.
The governors, who embrace Michigan Democrat Gretchen Whitmer, referred to as on Congress to cross the $52 billion CHIPS Act, which might put aside $2 billion for the type of older-technology chips of which there’s a deep scarcity within the automotive business.
The group, which additionally consists of the governors of auto-producing states like Alabama, mentioned the scarcity had value
automakers 2.2 million autos and affected 575,000 jobs within the business.
“The worldwide auto chip scarcity has hit Michigan and states throughout the nation laborious, idling vegetation and slowing manufacturing, threatening 1000’s of auto-related jobs up and down the availability chain,” Whitmer mentioned in a press release. “Without end, it’s clear now we have no time to lose if we’re going to guard jobs and preserve our aggressive edge.”
The semiconductor funding handed the U.S. Senate earlier this yr by 68-32 as a part of the broader U.S. Innovation and Competitors Act, or USICA. But it surely has not handed the Home of Representatives.
Components of the broader invoice have drawn opposition from some Home members who fear that it doesn’t have safeguards to stop analysis funds from benefiting China, the US’ main world competitor.
“We perceive that the Home of Representatives has its personal priorities with respect to the insurance policies and packages included in USICA, we hope the 2 chambers will now come collectively shortly to search out widespread floor with respect to this laws, together with full funding for the CHIPS Act re-shoring provisions, as quickly as potential,” the governors wrote.
Additionally signing the letter have been the governors of Illinois, Wisconsin, North Carolina, Kentucky, Pennsylvania, Kansas and California.
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