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Senate Passes Bill To Support U.S. Semiconductor Production

The U.S. Senate has passed a bill that will sideline $52 billion to support domestic semiconductor production efforts.

The Senate passed the bipartisan US Innovation and Competition Act (USICA) on Tuesday, which also included a 30 percent funding boost for the National Science Foundation, $29 billion to put together a new directorate to focus on applied sciences and $10 billion for transforming American cities into “technology hubs.”

President Joe Biden previously signed an executive order calling for a 100-day government review of semiconductor production efforts and infrastructure in the U.S., the findings of which were published on Tuesday. The White House also announced this week that it had launched a task force to address issues related to critical infrastructure in the country,  including for “homebuilding and construction, semiconductors, transportation, and agriculture and food.”

“While these short-term supply chain disruptions are temporary, the president has directed his administration to closely monitor these developments and take actions to minimize the impacts on workers, consumers, and businesses in order to bolster a strong economic recovery,” the White House said in a statement.

A shortage of semiconductors has crippled automotive production throughout North America in recent months, with the Detroit Big Three hit the hardest. The majority of semiconductor chips are manufactured abroad in countries such as China, Taiwan and Japan, which has made it particularly difficult for American automakers to maintain a strong supply of the chips amid the global shortage.

A sharp rebound in automotive sales after the height of the COVID-19 pandemic in 2020, along with increased demand for consumer electronics like laptops and tablets, led to the semiconductor supply pinch. While the effects of the semiconductor shortage are expected to wane in the second half of 2021, some experts predict the shortage will not fully subside until early or mid-2022.

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Comments

  1. What the point of this bill? The fools that are in DC will just raise the corporate tax rate like the current administration wants to do. Oh yea and keep adding overhead and red tap to the USA. To understand the problem one has to look at the root causes. This will be a bandaid fix. Then when the POTUS gets congress to raises taxes companies will still want to do business in commie land. Americans have done this to themselves.

    Also this is going to take years to implement. States will have to do bidding to get the new sites for these semiconductors. Since that involves politics it will be dragged out because representatives from sorry states will want these plants in their backyard. As if the economy was truly left to itself on this one. All of the new plants for these semiconductors will be built in Texas or in the southeast. That brings up another point. The nation has fallen from grace so much that people expect government interference for everything. What happened to Laissez Faire? Americans have grown so accustomed to having safety nets via the government.

    I am no fool and understand the importance of semiconductors. But one must study all of the factors and choices that got them in their present situation.

    This is what happens when people allow others to sell them out. Its okay though everyone can vote still and will continue to vote for the same clowns who don’t truly represent the people. They only represent themselves and their fat bank accounts.

    Reply
  2. This is needed, badly. Our national security depends on silicon, I don’t care about free market crap if your competitors and adversaries can pick your choke point and take you out. Also if people think it will take years to implement, think again, Arizona is already to become the next Silicon Valley, they even went to Israel for their water saving techniques for manufacturing in a dry area.

    Reply
    1. Based on agreements written long ago having to do with how Colorado River water is distributed, and the current drought going on in much of the Southwest, Arizona ( as well as New Mexico ) could have a 25% reduction as soon as next year.

      Roosevelt Reservoir is 130ft lower than what it was 20 years ago. I guess that’s what happens when you try to populate a desert with millions of people. Let’s not forget the impact of electrical production this will also cause.

      Soon to be an abundance of worthless properties. Don’t forget your Divining Rods!

      Reply
      1. Available water maybe as said it is a drought ongoing and it won’t last forever. For production as I’d mention before on technology used in the desert is water recycling for new factories in that state. Only Arizona outside of Israel uses Israel water conservation.

        Reply
  3. Like the “Infrastructure” bill, I doubt the contents of this bill are more than 5-10% related to it’s title. Just another pork bill to create the image they’re working on the problem. From what I read it’s sending more money to NSF to research emerging technologies (good, but not a short term fix for the problem) and a “directorate” to decide what to spend the money on (we all know how well politicians do with that).

    Reply
    1. The infrastructure bill is a joke. Less than 1/8th of it actually goes to highways and railroads.

      The federal Covid relief funds can be spent by the states on literally anything EXCEPT highway construction or repair.

      Reply
  4. GM will still buy the cheapest ones made in China.

    Reply
  5. I hope the shareholders give another raise to the automotive corporate idiots that put us in this position in the first place, sometimes I wonder why I even buy American anymore?

    Reply

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