Two dozen House lawmakers sent a letter to Speaker Nancy Pelosi (D-CA) urging the passage of legislation to address ongoing bottlenecks in semiconductor production.
The letter presses for the immediate passage of two bills that aim to fix issues in the semiconductor supply chain. The CHIPS Act, which was included in the U.S. Innovation and Competition Act that passed the Senate in June, would provide a $52 billion infusion into domestic semiconductor R&D and the construction and expansion of semiconductor manufacturing facilities. The FABS Act, introduced in June, would improve the supply chain by creating an investment tax credit for semiconductor manufacturing equipment and construction of new manufacturing facilities.
Led by Reps. Haley Stevens (D-MI) and Colin Allred (D-TX), the letter calls for the full $52 billion for the CHIPS Act, including $2 billion for mature technology nodes, which are particular processes for manufacturing semiconductors commonly used in the automotive industry, among others.
Semiconductor shortages have led to massive delays and supply chain holdups in the automotive industry, leading to increased production times and hundreds of billions of dollars in losses for automakers globally. The letter also mentions challenges for other industries such as IT, aerospace, renewable energy, and medical devices.
“Semiconductors play an increasingly important role in American innovation, job creation, national security, and our defense industrial base,” the lawmakers wrote. “Our country needs to help enhance research and development efforts by both government and industry for next-generation technology.”
