The chips made in the USA, the plan, the auto crisis

As you shop for the holidays, you’ll notice more shortages than ever of high-tech items requiring microchips. It affects all economic sectors in one way or another.

Chips were invented in the United States. But now only 12% is made here. 0% of the most sophisticated chips are made in the United States. These are made in Taiwan and China.

The Detroit Big 3 automakers were forced to slow down or shut down production. The industry will lose out in manufacturing and selling 1.2 million vehicles this year, costing $ 210 billion.

The Chips Act was passed by the US Senate. It will provide $ 52 billion to the Commerce Department for grants and loans for microchips made in the United States. Commerce Secretary Gina Raimondo told a panel discussion in Metro Detroit: “For a company to receive money, it has to build a factory in America and employ Americans. And like I said earlier, there will be numbered strings attached.

This discussion took place this morning in UAW Region 1-A in Taylor. United States Representative Hailey Stevens said, “We are currently talking about the most critical issue for Michigan. “

Some of the federal money will go to vocational training but will not necessarily require that they be unionized jobs. UAW President Ray Curry said during the discussion: “We have the challenge to make sure this does not happen again.”

Some members of Congress at the table are saying that before the money is approved in the House, they want to resolve the competition concerns between Asia and the United States for low-cost labor. Dan Kildee said, “If we continue to see forced labor in China. For example, high quality polysilicon using slave labor. The Hemlock semiconductor right here in the United States, right here in central Michigan, cannot produce this material and be competitive.

General Motors vice president of global purchasing, Shilpan Amin, said automakers’ demand for chips will double in the next 5 years as they add more safety measures. “Whether it’s front camera detection, side blind zone alert, airbag response systems, we continue to put innovation and technology in place to keep people safe in our vehicle. Amin said.

The Commerce Secretary says they want the money to be approved by Congress by the end of the year for President Biden’s approval. From there, creating chip plans from scratch will take over a year.

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