A group of 21 industry groups aligned with the automotive and technology sectors is calling for Congress to finalize work on a bill to fund increased domestic chip production. CTIA is part of the group, along with USTelecom, Motor & Equipment Manufacturers Association, North America’s Building Trades Unions, and the Chamber of Commerce.
Congress in 2021 authorized federal spending on research and design initiatives to boost domestic chip production and create a subsidy for domestic manufacturers. But the money still needs to be included in an appropriation measure before it can be doled out, according to Bloomberg.
“It is essential Congress act swiftly to provide funding to make this law a reality,” the groups wrote in a letter to U.S. House Speaker Nancy Pelosi (D-CA), Senate Majority Leader Chuck Schumer (D-NY), House Minority Leader Kevin McCarthy (R-CA) and Senate Minority Leader Mitch McConnell (R-KY). “Our global competitors are investing heavily in semiconductor manufacturing and research, and continued inaction by the U.S. risks placing our country further behind in the competition for economic growth, supply chain resilience, technology leadership, and strengthened national security,” the associations continued.
A global semiconductor shortage that began in spring of 2020 alongside the COVID-19 pandemic has hampered U.S. car manufacturing and increased prices for consumers. Carmakers are competing for chips with makers of other electronic devices affected by the shortage, such as cell phones and computers.
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