A bipartisan group of 22 U.S. state governors is urging Congress to pick up the pace in finalizing government funding to deal with the semiconductor chip shortages disrupting production in the automotive and electronics sectors.

photo by pexels torsten dettlaffClick image to enlargeThe governors are hoping for a compromise package worth $52 billion and aimed at boosting semiconductor manufacturing in the U.S.

“The global shortage of these chips, exacerbated by the pandemic and supply chain constraints, has impacted people and industries across the country. As Governors, we can all point to industries in our states that have been impacted – from auto manufacturing to consumer electronics, home appliances, medical devices, agriculture, defense and more. These shortages have resulted in reduced production and in some cases, idled plants. This means workers with less income, increased prices at the store, less products for consumers to buy and an ever-growing dependence on foreign supplies,” a letter to the U.S. Senate and House of Representatives,  signed by the 22 governors, stated. “In the long run, increased domestic production of semiconductor chips will help to protect jobs, strengthen our supply chain, improve our national security and defense, allow our economy to grow, and keep the United States a global leader in technology and manufacturing.”

In early February the U.S. House of Representatives passed a bill aimed at increasing American competitiveness with China and $52 billion to boost U.S. semiconductor manufacturing. The U.S. Senate, however, had passed its own bill in June aimed at increasing competitiveness with China which also included $52 billion for chips. The governors urged federal legislators to draft compromise legislation that can pass both the House and the Senate so it can be presented to president Joe Biden for authorization.

“We urge you to take swift bipartisan action to reconcile the two bills to get to the president’s desk for signature. Now is the time for a comprehensive solution to this national security and economic crisis,” the governors wrote.

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