A couple of U.S. lawmakers from the Lone Star State are spearheading a national effort to solve the semiconductor chip shortage.
Senator John Cornyn and Congressman Michael McCaul say one of the biggest problems is that American businesses largely depend on China to get those chips. The lack of chips is hurting American businesses, like GM and Ford, who are pausing some pick-up truck production. That's one reason why McCaul says we need to boost manufacturing in the United States.
“We do that through both tax incentives and a grant program with the Department of Commerce,” McCaul said in a recent TV interview. “This has gotten broad bipartisan, bicameral support.”
McCaul pushing for the House to pass the CHIPS for America Act.
Erik Pederson, the Director of Government Affairs at the Semiconductor Industry Association, says solving the shortage is especially important for Texas.
“The semiconductor industry employees about 44 thousand people in the entire state, and it’s our second largest state for employment. We have a number of manufacturing facilities,” Pederson said.
The chips are used in smartphones, cars, laptops, and airplanes. The overseas supply chain had slowed last year due to the pandemic. Pederson says boosting manufacturing here in America will be a help to local communities.
“When some of these manufacturing facilities start to pop up, then people that need to provide other services and equipment also pop up around them. We have some of those in the state of Texas, and I think that success in the semiconductor industry breeds more success when it comes to manufacturing.”