Pelosi, Schumer Urged to Pass Chip-Funding Bill by 21-Industry Group

(Bloomberg) -- A group of 21 industry groups aligned with the automotive and technology sectors is calling for Congress to finalize work on a bill to fund increased domestic chip production.

Congress in 2021 authorized federal spending on research and design initiatives to boost domestic chip production and create a subsidy for domestic manufacturers. But the money still needs to be included in an appropriation measure before it can be doled out.

“It is essential Congress act swiftly to provide funding to make this law a reality,” the groups wrote in a letter to U.S. House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy and and Senate Minority Leader Mitch McConnell. 

A global semiconductor shortage that traces its origins back to the beginning of the Covid-19 pandemic in the spring of 2020 has hampered U.S. car manufacturing and increased prices for consumers. Carmakers are competing with other makers of other electronic devices affected by the shortage, such as computers and mobile phones, for chips that have remained scarce for more than a year. 

“Our global competitors are investing heavily in semiconductor manufacturing and research, and continued inaction by the U.S. risks placing our country further behind in the competition for economic growth, supply chain resilience, technology leadership, and strengthened national security,” the letter continued. 

Among the signatories of the letter is the Business Roundtable, CTIA, Motor & Equipment Manufacturers Association, North America’s Building Trades Unions, USTelecom, and the Chamber of Commerce. 

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