VERY pleased to see the Biden administration tackling this head-on - between this and pharmaceutical manufacturing (and a few other things), we've outsourced critical needs and left ourselves vulnerable.
"The reason we're really in this mess is because for a long time, we haven't invested," said Raimondo, a former venture capitalist and governor of Rhode Island. "We took our eye off the ball. We used to lead the world in semiconductor manufacturing and now we don't. We just disinvested."
Indeed, the US share of worldwide semiconductor manufacturing dropped to just 12% last year, according to the Semiconductor Industry Association. That's down from 37% in 1990. The trade group blamed "substantial" subsidies offered by foreign governments that place the United States at a "competitive disadvantage."
The Biden administration has pushed Congress to enact a $52 billion bill that would incentivize increased semiconductor production and research in the United States. That bill, called the CHIPS for America Act, passed the US Senate in June but hasn't been voted on in the House.
"It's pretty simple. We need to make more chips in America," Raimondo said.
The shortage of computer chips is raising the price of new and used cars, delaying shipments of electronics and holding back the economic recovery from the Covid-19 pandemic.