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Nine governors press U.S. lawmakers to pass semiconductor funding bill -Breaking

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© Reuters. FILE PHOTO – Newly built Ford Motor Co. 2021 F150 pickup trucks can be seen waiting in Dearborn (Michigan), U.S.A, on March 29, 2021. REUTERS/Rebecca Cook/File Photo

Stephen Nellis and Ben Klayman

(Reuters) – A bipartisan group made up of nine governors sent a Wednesday letter to U.S. legislators urging them to approve subsidies to semiconductor factories, which would make chips for automobiles.

Gretchen Whitmer (Michigan Democrat) was one of the governors who called for Congress to approve the CHIPS Act worth $52 billion. This would allocate $2 billion for older technology chips that are in great demand within the auto industry.

This group includes governors from auto-producing states such as Alabama. They said that the shortage was costing them dearly.

Automakers produced 2.2 Million vehicles, which impacted 575,000 workers in the sector.

“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,” Whitmer said in a statement. “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.”

In the broader U.S. Senate vote, the funding for semiconductors was approved earlier this year. It passed by 68 votes to 32. Innovation and Competition Act (USICA). However, it was not approved by the House of Representatives.

Some House members are opposed to certain elements of the larger bill because they fear that research funds could be used against China, which is the United States’ main global rival.

“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 wrote.

Governors from Illinois, Wisconsin and North Carolina signed the letter.

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