© Reuters. FILE PHOTO: Commerce Secretary Gina Raimondo testifies on Capitol Hill in Washington, D.C., U.S., February 1, 2022. Andrew Harnik/Pool by way of REUTERS/File Picture
WASHINGTON (Reuters) – U.S. Commerce Division Secretary Gina Raimondo on Monday stepped up stress on Congress to approve $52 billion in funding for chipmakers to increase operations, warning that companies would abandon American growth plans with out the laws.
“Mark my phrases … if Labor Day comes and goes and this Chips Act is not handed by Congress, these corporations won’t wait and they’re going to increase in different international locations,” she warned in an interview on CNBC.
Each homes of Congress have handed variations of laws to make the USA extra aggressive with China that embody the chip funding.
Nonetheless, lawmakers have to this point failed to achieve consensus on a closing model of the sprawling package deal, regardless of a worldwide chip crunch.
Raimondo’s warning got here after Taiwan’s GlobalWafers introduced plans earlier on Monday to construct a $5 billion plant in Sherman, Texas to provide the silicon wafers wanted for chipmaking. Raimondo mentioned the corporate’s CEO instructed her the funding was contingent on Congress approving the funding.
“The results to our nationwide safety are grave. If we do not get this handed, and for those who’re not going to have the ability to get every thing you need on this, it is time to transfer on as a result of we can’t wait,” she admonished lawmakers.
GlobalWafers didn’t instantly reply to a Reuters’ request for remark.
The persistent industry-wide scarcity of chips has disrupted manufacturing within the automotive and electronics industries, forcing some companies to cut back manufacturing.