Peters, Dingell, Raimondo Host Roundtable in Michigan About Semiconductor Chip Shortage

Statement

Today, U.S. Senator Gary Peters (MI) and Congresswoman Debbie Dingell (MI-12) hosted U.S. Secretary of Commerce Gina Raimondo and industry, labor, and state and local government partners at the UAW Region 1A in Taylor, Michigan for a roundtable discussion about the semiconductor chip shortage. The roundtable discussion focused on the shortage's impact on Michigan, especially on auto workers, and how strong funding and collaboration is needed to boost the domestic manufacturing of semiconductor chips.

"The semiconductor chip shortage has hurt our economy and cost jobs -- and highlights why we must shore up our supply chains and support domestic manufacturing," said Senator Peters. "To maintain our global leadership and strengthen our economic competitiveness, we must counter the actions of competitors like the Chinese government -- which is aggressively investing in the research and development of new technologies. That's why we must pass legislation to maintain the nation's leadership over critical technologies and supply chains -- including my proposal to boost domestic manufacturing of mature node semiconductors -- which will provide long-term stability to the auto industry while investing in Michigan workers. It was an honor to have Secretary Raimondo visit Michigan to discuss this critical issue, and I'll continue to partner with the Biden administration to strengthen our supply chains and ensure American workers can outcompete anyone."

The ongoing semiconductor chip shortage has forced United States auto manufacturers to cut production, impacting workers and suppliers. Additionally, the Alliance for Auto Innovation found that if the shortage continues as is, there could be 1.28 million fewer vehicles made in the U.S. in 2021. The United States made 37% of global chips in 1990, but now that number is only around 12%.

"This Roundtable had been in the making for months because Michigan is ground zero for where the chip shortage is devastating auto workers and auto companies. I've talked to the President, my colleagues in Congress, and many cabinet members about this -- Secretary Raimondo recognizes the severity of this crisis," said Rep. Dingell. "We must take this head on, especially in the state that put the world on wheels. The United States used to produce 40% of the chips in the world, but now that statistic is only 12%. Today's discussion made clear that we need all voices at the table to get this done so we can protect workers, support the auto industry, and boost domestic manufacturing. It's why I have introduced legislation on this issue and continue to push for its quick passage -- I am committed to working with all involved to bring America's supply chain back home and keep it here."

"The United States was once a leader in the production of semiconductor chips, which power our smartphones, medical equipment, and automobiles. But today, we account for only 12% of global production and produce zero percent of the most advanced chips," said Secretary Raimondo. "If we are serious about increasing American competitiveness, protecting our national security, and hitting President Biden's electric vehicle goals, it is imperative that we reinvest in this critical industry and ensure that more chips are made here at home. I urge the House and Senate to reach agreement quickly on the U.S. Innovation and Competition Act, which includes $52 billion for domestic semiconductor production. Doing so will not only make us more competitive on the world stage but will translate into more good-paying jobs for Detroit, the state of Michigan, and the entire country."

"We have to work together to tackle the chip crisis head-on," said Governor Gretchen Whitmer. "The chip shortage is impacting 575,000 auto-related jobs and has slowed production in our state and across the nation. We have to take action now, which is why I led a bipartisan group of some of my fellow governors and called on national leaders to take action by passing the CHIPS Act, which would help us create and protect jobs, maintain our competitive edge, and bolster our supply chain. Together, we can grow domestic semiconductor manufacturing and continue leading the future of mobility and electrification."

"The global pandemic has shown us what happens when we are dependent on parts made halfway around the world. I'm laser-focused on making sure more semiconductor chips are made right here in Michigan. Michigan workers are the best in the world and will lead the manufacturing future," said Senator Stabenow.