Biden urges Congress to pass bill jumpstarting US chip manufacturing

Business

(NewsNation) — President Joe Biden is pushing legislation to decrease the U.S.’ reliance on foreign microchips, primarily from China, amid a nationwide shortage of them.

Microchips power everything from cellphones to cars to home appliances. They’ve been in short supply due to a number of factors. This shortage of microchips and semiconductors has caused the auto industry to close some plants and make fewer vehicles than they have in the past.

U.S. Commerce Secretary Gina Raimondo has said this drove up prices and fueled inflation.

Officials say the U.S.’ dependence on chips manufactured in other countries is a threat to national security.

Over the past year, both the House and Senate have acted independently to pass their own versions of competitiveness legislation. To reconcile the difference between these bills, both chambers have to enter a conference before sending a final product for Biden to sign, Schumer said.

Both the Senate’s United States Innovation and Competition Act and the House’s America COMPETE Act, provide more funding to support U.S.  semiconductor manufacturing, research and development and supply chain security.

“For the sake of American workers, American consumers and our national security. We must lead the world again,” Senate Majority Leader Chuck Schumer said. “Passing this bill is critical for achieving that goal.”

On Thursday, Biden took his “Make it in America” message on the road during a talk in Greensboro, North Carolina.

“There is not a thing, not a single thing, America cannot do. Not a single thing where we cannot compete with the rest of the world,” he said.

“Congress needs to get this bill on my desk as quickly as possible,” Biden said. “Our economic strength is on the line, and national security as well as on the line.”

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