WASHINGTON—U.S. Commerce Secretary Gina Raimondo said the U.S. will not meet President Biden's goal for half of all new vehicles sold by 2030 to be zero-emission if Congress doesn't pass legislation providing billions of dollars for domestic semiconductor production.
"We are wasting time, precious time, every day the CHIPS Act isn't passed and appropriated in Congress, and it will absolutely threaten our ability to hit the goals with respect to electric vehicle production and use in America," Raimondo said during a call with reporters last week.
The Creating Helpful Incentives to Produce Semiconductors for America Act—or CHIPS Act—would provide $52 billion to incentivize domestic semiconductor production and research, including $2 billion in support for chips used by automakers and parts suppliers.
Funding for the CHIPS Act was included in the bipartisan U.S. Innovation and Competition Act that was passed by the Senate in June but later stalled in the House. Leaders from both chambers agreed this month to resolve disagreements over the bill.
Raimondo said the delay in the measure's full passage means the U.S. falls further behind countries such as China, Taiwan and South Korea, as well as the European Union, which are all investing in semiconductor manufacturing. Reaching Biden's ZEV goal by the end of the decade "can only happen if we increase supply of semiconductors," she said.
"Better semiconductors will enable us to make electric vehicle batteries—better batteries, more efficient batteries," she said. "Better batteries will enable us to capture a larger share of the electric vehicle market and, in doing so, create jobs in America. It's also going to help us achieve our climate goals."
Raimondo, on Nov. 29, is participating in a semiconductor roundtable with the United Auto Workers and delivering keynote remarks at the Detroit Economic Club on how the department is addressing the chip shortage and supply chain disruptions.
Auto makers around the world have been forced to cut vehicle production and eliminate certain vehicle features because of the lack of chips.
Raimondo's department this year established an early alert system to help resolve and minimize supply chain bottlenecks occurring because of the global shortage.
The department also asked companies to voluntarily share information regarding COVID-19-related disruptions to semiconductor manufacturing plants and their supply chains.
