Congressman Dan Kildee (MI-05), Chief Deputy Whip of the House Democratic Caucus, today welcomed U.S. Commerce Secretary Gina Raimondo to Michigan for a discussion on the global semiconductor shortage impacting many Michigan workers, including automotive workers.
In Congress, Kildee is leading efforts to boost the domestic production of semiconductors in the United States instead of China, including $2 billion to expand the production of so-called "legacy chips" commonly used in automobiles.
"America should not be dependent on foreign countries like China for our economic future," said Congressman Kildee. "Our current dependence on foreign suppliers for semiconductors is hurting Michigan workers, business owners and consumers. To protect Michigan jobs, strengthen our domestic supply chain and keep our economy growing, we must end our reliance on foreign-made semiconductors we need for our cars and so many other electronics. In Congress, I've been leading the effort to increase domestic semiconductor manufacturing. I thank the President Biden, Secretary Raimondo and Republicans and Democrats in Congress for working to pass this critical funding."
America has long relied on manufacturers in East Asia for the semiconductors in products we use every day. Pandemic supply chain disruptions, along with increased consumer demand and decreased production capabilities in East Asia, have created a global semiconductor shortage. This ongoing shortage is disproportionately harming the automotive industry, resulting in temporary production stops and layoffs for union workers. According to AlixPartners, the global automobile industry could lose $110 billion in revenue and produce 3.9 million fewer cars than planned in 2021 due to the semiconductor shortage.
In July 2021, Congressman Kildee led a bipartisan letter urging swift action to provide at least $2 billion in emergency funding to domestically produce semiconductors used in the manufacturing of automobiles, commonly known as "legacy chips". Kildee also cosponsored H.R. 4704, the Mature Technology Node Resiliency and Manufacturing Act, which would provide $2 billion to fund incentive programs to increase domestic production of legacy chips.
Generations of underinvestment has left American infrastructure riddled with bottlenecks that make it harder for businesses to move goods to market and add delays and costs for consumers. Congressman Kildee has also been working with the Biden administration to address supply chain issues, including:
The Supply Chain Disruptions Task Force to address short-term supply chain bottlenecks as the economy rapidly reopens;
A voluntary survey for information on the domestic supply chain to understand and quantify where bottlenecks exist; and
An early alert system to provide the Supply Chain Disruption Task information so that it can proactively minimize real-time semiconductor supply chain disruptions linked to COVID-19.
Congressman Kildee recently helped pass the Bipartisan Infrastructure Law--a once-in-a-generation, much-needed bipartisan infrastructure investment to modernize supply chain infrastructure, including roads, rails, ports and freight infrastructure. This bipartisan law, supported by Republicans and Democrats, will also deliver at least $10 billion in Michigan investments to rebuild our roads, bridges, public transit, rail and water infrastructure in Michigan.