WASHINGTON Reuters - U.S. Commerce Department Secretary Gina Raimondo stepped up pressure on Congress to approve $52 billion in funding for chipmakers to expand operations, warning that firms would abandon American expansion plans without the legislation.
Mark my words if Labor Day comes and goes and this Chips Act isn't passed by Congress, these companies will not wait and they will expand in other countries, she warned in an interview on CNBC.
Both houses of Congress have passed versions of legislation to make the United States more competitive with China, which includes chip funding.
The lawmakers have so far failed to reach consensus on a final version of the package, despite a global chip crunch.
Raimondo said earlier in the day, Taiwan's GlobalWafers announced plans to build a $5 billion plant in Sherman, Texas to produce silicon wafers needed for chipmaking. Raimondo said that the investment was contingent on Congress approving the funding.
The consequences are grave for our national security. She said if we don't get this passed, and if you're not going to get everything you want in this, it's time to move on because we can't wait.
The manufacturing of chips has been disrupted due to a shortage of chips, forcing some firms to scale back production.