Biden urges Congress to pass chip bill

President Joe Biden applauded the plans Intel Corp. to build a new semiconductor plant in Ohio and urged Congress to pass stalled legislation that would provide $52 billion for semiconductor research and manufacturing. chips in U.S amid global shortages.

“I want other cities and states to be able to make announcements like the one that is being made here today,” Biden said Friday at the White House, accompanied by Intel CEO Pat Gelsinger. “And that’s why I want Congress to pass this bill right away and put it on my desk.”

The Biden Administration has been pushing to bring more chip manufacturing to the US and alleviate shortages stemming from increased demand and supply chain issues related to the pandemic. But there have been few tangible results.

The lack of chips has caused delays in the production of consumer electronics and automobiles, and has led to licences. The price of used cars, largely due to a shortage of chips, remains a component of rising inflation.

Biden’s comments came after Intel said Friday it plans to invest $20 billion in a chip-making hub outside Columbus, Ohio, which the company hopes will grow into the world’s largest silicon manufacturing plant. biggest in the world. The plant is expected to be operational in 2025.

“Most semiconductors today are sourced overseas,” Gelsinger said at the White House. “As a country, we cannot rely solely on imports for such essential technology. And the only way to address this security and economic risk is by increasing our domestic semiconductor manufacturing capacity.”

Even as Biden has taken the hit from all of the broader supply chain issues across the economy, he has been slow to push for legislation to include chip financing. Biden and other officials, including Commerce Secretary Gina Raimondo, have pointed to the general need to boost domestic production.

Biden and his Administration have had few options to help alleviate supply shortages. None of the new installations announced last year will solve the problem in the short to medium term, and analysts expect the current shortage to last into next year.

Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. are also expanding their investments in the US The companies hope to build the new factories with funds from legislation that has stalled in the House, known as the CHIPS Act.

The legislation, which includes the money for chips, passed the Senate with bipartisan support last June. Nancy Pelosi said the House is prepared to announce its own version of the bill and will soon begin the process of reconciling any differences with the Senate proposal.