The ongoing global microchip shortage continues to have a profound impact on General Motors’ production capabilities, forcing the automaker to reduce the availability of critical features, as well as halt production outright for a selection of models. Now, to help address the shortage, the Biden Administration is pushing congress to pass a new $52 billion microchip production bill.
Per a recent report from Reuters, the bill, dubbed the “America Competes” act, will work to boost domestic chip production and investment, as well as increase technology research capacity.
Last year, the Senate passed the U.S. Innovation and Competition Act, which included $52 billion for domestic microchip production, as well as $190 billion for technology and research to boost U.S. competitiveness with China.
Comparatively speaking, the House bill includes several key differences from the Senate bill, such as exclusion of the $190 billion for technology development and research. However, the Senate bill does include $45 billion to support the supply chain, plus manufacturing.
According to the House, the funding could be used to “relocate a manufacturing facility out of countries of concern, including countries that pose a significant economic or national security threat to the United States.” Additionally, funding could be used to create stockpiles of critical microchip components and work to alleviate future shortages.
The House will take up the bill next week.
President Joe Biden said that the proposals are representative of the “transformational investments in our industrial base and research and development” which helped to drive U.S. global economic leadership through the 20th century.
Meanwhile, as the broader automotive industry continues to struggle with the microchip shortage, General Motors is working to develop its own family of microcontrollers in order to “develop an ecosystem that is much more resilient, more scalable and always there to meet our needs,” per GM president Mark Reuss. GM expects automotive semiconductor requirements to more than double in the next few years as new EVs and vehicle technologies come to market.
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Comments
Just make sure that Brandon and Pelosie don’t buy stock in Samsung and Intel immediately before voting on the bill.
We don’t need this waste of Money. We have plenty of Factories being built for Computer Chips in the US. Simple thing to do is to keep business tax low and increase tax on products that should be produce in the US but is not. However you have to look at this from a business perspective and understand if a particular product sells more in another country than the US it maybe better to produce it there. But don’t make easy for them just to produce it some place other than the US by raising taxes.
So you’d rather the rest of the world (predominately China) control the global chip supply then?
You can’t be upset that the US isn’t building much in the US anymore and then be upset when the current administration tries to fund policies that support “Made in America”
Adam. Ohio was able to bring Intel to build two plants and with future plans up to 6 more plants in Licking County.
They already are set with over 1,000 acers secured and ready to start the build.
Ohio had better tax incentives, cheap property, lower price housing and more affordable labor as the cost of living is much less than California. Finally Ohio has a ton of water that is needed for production.
The problem here can be easily solved at the state level where things can be done more effectively.
The Fed government always wants to spend their way out of a problem when if they just worked with the states they could get things done and save the tax payer from the squeeze as they call it.
Political agendas get expensive and states are more willing to make deals for future growth.
Mike Dewine and his staff did a solid job on this deal. He is a Gov with no future ambitions or political ideas. He will run for re election and retire so he is one of few that is doing what he can to make this a better place and not screw everyone.
We have gone 4 years with no real issues and scandals.
I don’t really disagree with you, however IF funds can be used to expedite the process I am for it. I am living this supply chain issue and chips are the biggest problem I have.
For the record, I am not a Biden fan and not a fan of horribly inefficient government overall but everything he does is not evil, nor do I believe everyting the government does is evil.
Good on Ohio for getting the gig, they deserve it.
The government does not need to fund this. Just lower the tax for business. Its ridiculous how much taxes are involved in a product before its even sold. You could get rid of all the taxes on all business currently and just have a fair tax or national sales tax and the government would take in more money. Nobody would be exempt from paying taxes. Tax laws were written by our elect officials for more of their gain and not business or the average citizen. Which is one reason we need term limits.
They need to cut the waste and pork and be fiscally efficient with our money.
If they would due that you would see surpluses.
Yest today they pass massive budgets and do so with so much hidden waste
We the public shout reject people that are wasteful and play the game of you can read it after you pass it.
Sales tax is heavier for poor people than for rich ones.
This means a decrasing rate of tax: the richer you are, the smaller your rate of tax will be.
Do you want that?
Adam,
Somehow the automobile manufacturers in the United States have convinced our government that they are so integral to the United States economy that taxpayers need to invest in them every year in order to maintain a robust economy.
Maybe shareholders need to take it on the chin and invest in a company that invest in itself. If companies purchased US built computer chips, instead of going for the cheap Chinese chips, we would pay a little more for cars but at least we wouldn’t have a two-year shortage and astronomical prices on preowned cars.
LMAO ! “the current administration tries to fund policies that support “Made in America””? The previous Administration did that and your Corporate Media Propaganda Machine lynched him for it ! Or have you forgotten that fact already? Go do your virtue signaling somewhere that people can’t or won’t recall recent History!
Yeah, I remember when Trump had all of his trash products made in the USA, and only hired US citizens to work at his Golf Clubs. When he hugged the Flag it was so apparent, his love of Country. /s LMAO.
Cry more
Careful your white privilege is seeping through the screen.
Manufacturing is very much needed in this Country. Especially with the Switch to Renewable Energe and BEV’s
If you take away Tesla, we are soooooooooooooo far behind.
Correction, we are farthest ahead despite being the least on board. We are the only county who doesn’t lie about our metrics (even freakin Germany inflates their numbers) we also produce so much more than others.
This regime is spending money like a 18 year old kid with their first credit card. Don’t they understand that we are almost 30 trillion in debt?
The past several regimes have been spending money like it doesn’t matter. And the thing was it did not. Monetary policy is a funny thing. Inflation lags not leads. The country and world have gotten so used to easy money it is going to be quite the killjoy now that inflation is back with a vengeance. One analysis shows real bond returns are -7%. (0 interest – 7 inflation) which I think is a record. Even the 70’s maxed out at -5. IF the fed increases rates by 1% by year end and IF inflation gets no worse, we will still be at -6% return. And the party in the stock market is likely over too. Buckle up.
Given the circumstances, where would you recommend putting your money?
Follow the Ohio plan and let the states compete for the deals. A lot of states are doing a good job by being hospitable places to do business and creating a place for growth.
Mainly in cash at the moment. I think 75% if I remember right. Particularly in retirement accounts, I’ll buy something that looks low and jump out day/week later if I make a bit. The retirement accounts don’t get hit with STG tax rates, although they’ll get hit when I withdraw the money. So mainly I’m going to take the -5 to -7% hit on inflation for a year or so instead of the -?% return in the market. I could see a correction like 08, which I think peaked around -50. Bonds and bond funds in particular are going to get creamed with rising rates.
Thanks. I suppose if there’s an 08 correction then buying the dip could work. I’ve been hearing good things about crypto, but it’s too risky for my tastes.
In a hermetically sealed mayonnaise jar on Funk & Wagnall’s porch.
Wow, Brandon takes a break from trying to get us all killed by the Russians. Of course, we need chips. And now, finally even brandon gets a teleprompter spot to bring us the big news. Should have happened last year though.
Why does the government need to put money into this. Let industry make the investment. Maybe take some of that money from the EV push and make chips. EV push is half baked at best.
The more our wonderful government gets involved, the more it gets messed up. They need to heed Built in America and stop sending money to other countries where the money NEVER reaches the people that need it or intended for! Tomg
Sure, we have a serious microchip shortage, but the government should not be involved with this – unless of course you live in China. So now, not only are we paying premiums for the product but we’ll be paying again in our taxes. The market and supply will take care of itself.
sad most tech companies shipped there production facilities and jobs overseas for cost savings a d profit
Brandon is going to make America look stupid and weak just like he did when he abandoned our brave soldiers in Afghanistan in his EPIC failure withdrawal. Putin is going to hit the Ukraine while China attacks Taiwan and the N. Korean clown fires off more missiles.
Brandon, his crook brother AND druggie Idiot son Hunter have million dollar deals in the Ukraine (conflict of interests) and will make our military look inept and put our brave soldiers at risk with his ineptitude.
This is what happens when CLUELESS , WOKE imbeciles get mad at someone’s mean tweets.
Brandon’s supporters share the blame for electing a weak, senile buffoon. Until then enjoy the massive inflation, fake stats and record breaking gasoline you fools voted for!
The midterm elections can’t happen fast enough.