State and local officials urge congress to address chip shortage - ABC 12 News

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FLINT, Mich. (WJRT) - In an urge to move quickly and swiftly, Governor Whitmer along with eight other governors stated in a joint letter to congress.

The Creating Helpful Incentive For Production of Semiconductors (CHIPS) for America will push congress to take action on the U.S. Innovation and Competition Act, which would provide 52 billion dollars in incentives to boost domestic semiconductor production and research.

For the last nine months the CHIP shortage temporarily idled many auto plants including Flint Assembly, leaving thousands of vehicles waiting on chips and drying up inventory on dealer lots.

In recent talks the Biden Administration has looked at moving production to the U.S. but experts say it’s not that easy.

“The types of chips that we use are a wide range, very big mix,” Kristin Dziczek, the senior Vice President at the Center for Automotive Research said. “You can’t just build one plant and spit out all the chips the auto industry needs, you will have to have a wide range of them. And that mature technology that we rely on. There’s some coming from the United States, but a lot of it is coming globally.”

However, Dziczek adds that congress taking steps to move quickly is more than possible.

“Getting greater transparency into the chip issue and finding out, you know, where chips are coming from, and just understanding it better,” she said. “So that we know, like which alliances we need to make.”

Local leaders are also showing their own support for the legislation.

In a statement to ABC 12 Congressman Dan Kildee said “Our dependence on foreign suppliers for semiconductors is hurting mid-Michigan workers, businesses owners and consumers. To protect Michigan jobs and keep our economy moving, we must end our overreliance on the foreign-made semiconductors we need for our cars and so many other electronics. That’s why, in Congress, I have been leading the effort to fully fund the CHIPS Act, which would deliver $52 billion to boost the domestic production of semiconductors. America should not be dependent on foreign countries for our economic future.”

Even if the bill were to pass relatively soon, it’s unclear how quickly semiconductor manufacturing could ramp up.

In recent weeks, that chip shortage has eased--only slightly but we need to remember that CHIPS aren’t just in cars but plenty of other consumer items like gaming systems, phones, even household items like washing machines.

With holidays coming up and many of those items being on wish lists, production could slow down again.

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