In an interview with CNBC’s Jim Cramer, U.S. Secretary of Commerce Gina Raimondo stressed that increasing domestic chip production is crucial and that the U.S. is on track to meet its goals by the end of the decade.
She highlighted President Biden’s strong commitment to the issue and emphasized the need for practical solutions rather than political games. This focus is reflected in the CHIPS Act, which is designed to boost chip manufacturing in the U.S.
The CHIPS act, a key initiative of the Biden Administration, has allocated substantial funds to incentivize semiconductor companies like Intel, Micron, Samsung, and Taiwan Semiconductor to produce their chips in the U.S. Raimondo explained that this effort is crucial to reducing the country’s reliance on foreign-manufactured chips, particularly given that over 90% of U.S. graphics chips are currently made in Taiwan.
U.S. Commerce Secretary Emphasizes Urgent Need for Domestic Chip Production, Highlights CHIPS Act Goals
She described this dependency as both “untenable” and “unsafe,” arguing that it leaves the U.S. vulnerable to supply chain disruptions.
Raimondo stressed that while some chip manufacturing will inevitably remain in Taiwan, it is essential for the U.S. to mitigate its extreme vulnerability by increasing domestic production.
The aim is to produce 20% of the country’s chips domestically by 2030, a goal Raimondo described as ambitious but achievable. This strategic shift is intended to enhance national security and reduce reliance on foreign sources for critical technologies.
In addressing concerns about the shift of manufacturing jobs overseas, Raimondo contended that the offshoring of production was driven by American corporations seeking lower costs and higher profits.
She pointed out that this pursuit of cheap labor and capital led to a situation where the U.S. now finds itself vulnerable in key areas such as chips and critical minerals. Raimondo argued that a balanced approach, which considers both economic benefits and national security, is essential for future decisions.
Raimondo’s remarks underscore the Biden Administration’s focus on strengthening domestic chip production to ensure the nation’s security and technological independence. The CHIPS act represents a significant step toward achieving this goal, aiming to create a more resilient and self-reliant semiconductor industry within the United States.
