Governors urge Congress to pass subsidies for semiconductor factories

Nine governors have sent a letter urging the House to pass subsidies for semiconductor factories that produce computer chips for cars.

The governors from Michigan, Illinois, Wisconsin, North Carolina, Kentucky, Pennsylvania, Kansas and California sent the letter to lawmakers on Wednesday in support of the CHIPS Act, Reuters reported. 

The $52 billion bill would subsidize semiconductor manufacturers and give $2 billion to help produce older tech that has seen massive shortages in the auto industry.

The bill was passed earlier in the year by the Senate but has yet to make it through the House. 

The shortage of chips has hurt the auto industry in the pandemic, the governors wrote, according to Reuters.

“The global auto chip shortage has hit Michigan and states across the country hard, idling plants and slowing production, threatening thousands of auto-related jobs up and down the supply chain,” Michigan Gov. Gretchen Whitmer (D) said in a statement, according to Reuters. 

“With no end in sight, it’s clear we have no time to lose if we’re going to protect jobs and maintain our competitive edge,” she added.

Some lawmakers have rejected the bill, saying it doesn’t adequately address concerns that China could benefit from research funds, Reuters noted. 

“We understand that the House of Representatives has its own priorities with respect to the policies and programs included in USICA, we hope the two chambers will now come together quickly to find common ground with respect to this legislation, including full funding for the CHIPS Act re-shoring provisions, as soon as possible,” the governors said.

The Hill has reached out to Whitmer for comment.