The CHIPS Act is Moving Forward!
One of the primary goals of the chip and science bill is to expand semi-conductor computer chip production in the United States, which will likely result in more cars being built and sold in Michigan first and foremost, as well as more jobs for Michiganders in the states automotive industry.
The White House and Department of Commerce are optimistic companies will start to announce investments in the sector should funding from the $52 billion package become law.
The CHIPS Act and SCIENCE Act would unlock hundreds of billions of dollars more private-sector semiconductor investments throughout the United States, including manufacturing critical for the nations defense and critical industries.
What Does This Mean for the Auto Shop Industry?
Let’s look at some of the countries outside of the United States to see what we are competing against.
The worlds largest chipmaker, TSMC (Taiwan Semiconductor Manufacturing Co.), said on Sunday the worlds largest chipmaker believes it can meet auto demand by June. America us barely getting our feet underneath us here in the US.
America went from producing nearly 40% of the World’s computer chips to around 12% in less 30-years… How did that happen?
The Same Old Technology Will Make Auto Shops Busier Then Ever!
The worlds largest foundry, Taiwan Semiconductor Manufacturing Company (TSMC), supplies more chips to the semiconductor industry in the United States than any other – yet automotive accounts for only 3% of The worlds largest foundries revenues. They believe that chip production capacity for cars will increase in the future. That is why it is so important to compete now while we can.
According to Alan Priestley, because automakers are not using the latest–or bleeding-edge–chips. Instead, companies including Taiwan Semiconductor Manufacturing Co and Global foundries are turning the clock back, investing billions into factories using older production techniques to produce chips for cars.
Is that a good thing or bad thing? We have yet to see!
Demand for chips continues to exceed supply, and automakers are not the only companies feeling the squeeze. A worldwide shortage of semiconductor chips has disrupted the auto industry. In the last year, that lack of chips has translated directly into the lack of new cars in dealerships.
It Is More Important Than Ever to Have a Trustworthy Auto Mechanic
People will have to use older vehicles longer and that means they will have to be in good shape.
The missing chips are now expected to reduce world production by 3.9 million vehicles, or 4.6%, in 2021. The global production loss due to a worldwide microchip shortage is expected to total 11.3 million units in 2021, according to AutoForecast Solutions.
The crisis has forced industry to reconsider just-in-time parts supply approaches for critical components like chips, which may require inventory. With shortages worsening due to political tensions, homegrown chip production is seen as a more viable alternative for meeting rising microchip demand. New chipmakers and software solutions companies are emerging, seeking to capitalize on the tight supply and the political push toward technological independence. Western players are now reconsidering their dependence on large manufacturers and opting to develop their own domestic chip industries instead.