Ryan urges support for legislation to fix chip supply chain
The global semiconductor chip shortage is slowing down the supply of several products we rely on every day, from new cars to smart phones.
Congressman Tim Ryan is among a group of democratic house lawmakers who are urging Congress to make changes to the CHIPS for America Act to end the dependency on foreign sources in China and Asia.
"We've got to bring that stuff back," Ryan said, (D-OH) 13th district. "We need it for our phones, our computers, weapons systems, so this bill is really to help companies establish themselves here in the United States."
A letter to congressional house leaders suggests changes to provisions against countries that engage in unfair economic practices and the trade title. They're asking the president to sign it as soon as possible.
The letter cites consequences to the U.S. economy and national security.
"We've got to be very, very aggressive I think," Ryan said. "I think the United States has failed for the last 30 to 40 years with allowing outsourcing."
Ryan believes the U.S. Department of Defense should be involved in helping to locate chip makers to the U.S., with a focus of having their operations set up in the Midwest and Ohio.
"I think the Voltage Valley would be a huge fit," he said. "If you land a company that does semiconductors, it's transformational."
He says these companies would bring good paying jobs and a strong supply chain if they were to come to the U.S.
Local car dealerships welcome the idea of having a semiconductor ship supply closer to home.
"It's about time quite frankly," Mitch Ury said, new car sales manager at Fred Martin Ford in Austintown. "If you move everything somewhere else to get cheap labor, this is the risk that you run doing that, and so it's has come full circle."
Ury says now is the time to sell your car for a profit. He says Fred Martin is buying up used cars at top dollar right now. He believes the inventory of cars on the lot won't catch up to pre-pandemic levels for much of this year.
Vehicles often contain thousands of chips to operate features like powered windows, navigation systems and automatic features.
Most new car customers are on waiting lists, scooping up vehicles before they're parked on the dealership lots for long.
"They're not going to start building stock for dealers to have on their lot until they're done with their retail orders," Ury explained.
The CHIPS for America Act is a provision within the USICA, also known as the United States Innovation and Competition Act. A total of $52 billion is included to fund the CHIPS for America Act. The USICA passed in the Senate in June before moving on to the House for consideration.