38 US House Representatives Urge Passage of $52 Billion Semiconductor Production Act

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] Thirty-eight bipartisan U.S. House members have urged the swift passage of the $52 billion 'CHIPS for America Act,' according to major foreign media reports on the 21st (local time).

The day before, U.S. semiconductor company Micron announced a $150 billion investment plan over 10 years and appealed for government support, to which Congress appears to be responding promptly.

The bill was passed in the Senate in June with 68 votes in favor and 32 against.

However, due to partisan conflicts between the Democrats and Republicans, the bill has not been processed in the House. The bill includes $2 billion to support the automotive semiconductor industry.

The automotive industry has recently suffered production disruptions due to a severe semiconductor supply shortage. General Motors (GM) reported U.S. car sales of 446,997 units in the third quarter, a sharp 32.8% decline compared to the same period last year.

In a letter sent to the leadership, the 38 lawmakers pointed out that the semiconductor supply shortage is worsening, stating, "If the semiconductor bill is not expedited, it will cause terrible consequences for the automotive industry and the entire national economy." They added, "As the semiconductor shortage continues, the automotive business, American workers, and national competitiveness are continuously weakening."

Micron announced the $150 billion investment plan over the next 10 years the day before. Summit Sandana, Chief Business Officer (CBO) of Micron, said, "The cost of building semiconductor factories in the U.S. is 45% higher than in other regions," emphasizing the need for government support.