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Biden Commerce chief calls for surge in U.S. chip production

Commerce Secretary Gina Raimondo known as for a serious enhance in U.S. production capability for computer chips whose present shortages are inflicting international manufacturing bottlenecks, saying the push might create jobs and wean the nation off over-dependence on China and Taiwan.

“Right now we make 0 percent of leading-edge chips in the United States. That’s a problem,” Raimondo stated Tuesday in a digital convention of the Council of the Americas, a business group. “We ought to be making 30 percent, because that matches our demand. So, we will promise to work hard every day, and in the short term also see if we can have more chips available so the automakers can reopen their factories.”

Reaching 30 % would doubtless take a long time of sustained funding. In the shorter time period, the Biden administration is in talks with Taiwan and Taiwan Semiconductor Manufacturing Co. to prioritize the wants of American automakers to spice up provide after a chip scarcity led to closed factories and furloughed staff, Raimondo stated.



Automakers have cut production after a surge in orders for objects similar to smartphones, TVs and computer systems left much less capability for a stronger-than-expected rebound in automobile demand.

Raimondo touted Biden’s proposal for a $50 billion fund to build semiconductors. Carmakers are pushing for a portion of the money to be reserved for vehicle-grade chips, warning of a possible 1.3 million shortfall in automobile and light-duty truck production in the U.S. this year if their trade isn’t given precedence.

“In the process of building another half a dozen fabs in America, that’s thousands of Americans that get put to work,” Raimondo stated. A “fab” is shorthand for a semiconductor fabrication facility.



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