US must invest in domestic semiconductor production: Commerce Secretary

Washington, Nov 18 (FN Agency) The United States is interested in the increasing production of semiconductors on its territory, US Secretary of Commerce Gina M. Raimondo said on Thursday at a briefing. “It is essential that the United States invest in domestic manufacturing [of semiconductors],” she said, adding that the US is interested in the production increase of semiconductors on its territory. The commerce secretary was speaking about her Asia trip during which she said she met with the government officials from Japan, Singapore, New Zealand and Australia.

Raimondo has repeatedly called on the US Congress to quickly pass legislation that would help develop American semiconductor production capabilities. She stated that the lack of domestic production in America of semiconductors poses not only an economic but a national security threat. The Senate in June passed the US Innovation and Competition Act (USICA) which would provide funding for semiconductor research, design and manufacturing initiatives through the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act. The US Federal Reserve in October said that the country’s industrial production fell 1.3 percent in September due to a supply shortage of microchips disrupting automobile output. The chip shortage issue is expected to be felt well into 2022.