7 to 10 new chip plants may be built in the United States

According to foreign media reports, US Commerce Secretary Gina Raimondo said on May 24th that the US government intends to provide US $52 billion for semiconductor production and research, which may be used to build 7 to 10 new US factories.

Raimondo said at an event outside Micron's (Micron Technology) chip plant that government funds were expected to bring "more than $150bn" in investment in chip production and research, including donations from state, federal and private companies. "We just need federal money. To unlock private capital. By the time we finish this, there may be seven, eight, nine, or even 10 new factories in the United States. " Raimondo expects states to compete for federal funding for chip factories, and the Commerce Department will start a transparent process for issuing funds.

On May 24th, Democratic Senator Mark Warner said the money could be used to invest in "seven to 10" new factories, "but this will not be done overnight and it will take years for the Commerce Department to make these investments."

Last week, Senator Chuck Schumer, the leader of the Democratic Party, issued a revised bipartisan law that includes $52 billion to invest in semiconductor chip production and research and development over the next five years. Investment proponents point out that the United States accounted for 37% of semiconductor and microelectronics production in 1990, but now only 12% is produced in the United States.

Texas Republican Senator John Cornyn, who also attended the joint event, has submitted an amendment to remove the wage clause from the current bill and said he wanted to vote on it, saying the wage issue was jeopardizing Republican support. "I don't think it's going to stop us from achieving our goals," Cornyn said of wages. "it's important, but I think it's important to pass (CHIPS for America Act), the US Semiconductor Act. China's development has to allow the US to invest on such a scale. This is a loophole that we have to fix."

The global shortage of semiconductor chips has affected carmakers and other industries, with automakers such as GM, Ford and Toyota cutting production this year because of shortages. Last month, Ford warned that chip shortages could halve its production in the second quarter, costing it about $2.5 billion and cutting production by about 1.1 million vehicles in 2021.