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

TAYLOR, MI - 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.

“This is both a challenge and an opportunity. We have an opportunity to work with Congress and the Biden Administration to develop trade and policy solutions that ensure that advanced technology that has been offshored is brought back and new technology stays right here in the United States produced by UAW workers,” said UAW President Ray Curry.

“Ford appreciates the dedicated leadership of Secretary Raimondo, Congresswoman Dingell and other Michigan officials in helping to resolve the current shortage of semiconductors and assuring their long-term availability by bringing transparency to the supply chain and making more and more chips in the U.S.  Everyone wins when we work together to provide customers with the must-have, increasingly electrified vehicles and high-value services that they want,” said Jonathan Jennings, Vice President of Global Commodity Purchasing, Ford Motor Company.

Statement from General Motors: “General Motors is grateful for the support of Congresswoman Dingell, Senator Peters and Governor Whitmer on this critical issue that continues to impact the global auto industry and applauds Secretary Raimondo’s strong focus on the matter. We look forward to continuing to work with the Administration and members of Congress to address the immediate impacts of the global shortage as well as long-term solutions, such as passing the CHIPS Act, to help U.S. automotive manufacturing resume normal levels of production. We welcome the support of U.S. automotive manufacturing and the 10.3 million jobs the industry supports.”

Statement from Stellantis: “Today, Stellantis Vice President of Supply Chain Marlo Vitous participated in the semiconductor roundtable hosted by Commerce Secretary Raimondo and several members of the Michigan Congressional delegation. Semiconductors are essential to the auto manufacturing process and shortages have triggered U.S. auto plant closures, negatively impacting workers and consumers in Michigan and across the country. Cooperation between industry and government is critical to addressing both near-term and long-term semiconductor supply challenges. Stellantis appreciated the opportunity to share our perspective on the ongoing semiconductor shortage, the urgent need for improved transparency and predictability within our supply chains, and the need for legislation to incentivize and expand semiconductor production in the United States.”

Peters, who serves on the Senate Commerce, Science and Transportation Committee, secured multiple provisions in the competitiveness package that passed the Senate this year to address the semiconductor shortage – particularly for the future. He worked closely with Senator Stabenow on provisions to create a $2 billion supplemental incentive program to support the domestic production of mature semiconductor technologies in the coming years and will ensure that semiconductor projects that support critical manufacturing industries are given priority status, which would include the automotive sector. This is in addition to $50 billion already in the bill to incentivize the production of semiconductors of all kinds in the U.S.—for a total of $52 billion.

Peters also led a letter to the Taiwanese government urging it to increase chip production and do everything possible to mitigate the ongoing chip shortage.  He previously joined a bipartisan, bicameral letter urging the Biden Administration to fund initiatives to restore and increase semiconductor manufacturing in the U.S. Peters has raised this supply chain disruption repeatedly with numerous Biden Administration officials in conversations both before and after President Biden took office.

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