Biden’s infrastructure plan will strengthen U.S. semiconductor industry: Secretary of Commerce

The White House infrastructure plan will put the United States on a par with China by strengthening the U.S. semiconductor industry, Commerce Secretary Gina Raimondo said on Wednesday.

“It’s about outdoing China,” Raimondo told CNBC’s Jim Cramer in a “Mad Money” interview. “If we act now… we’re going to compete with China. It’s time to do it, to rebuild, to build semiconductors in particular, but we have to get down to business to do it.”

The comments came moments after President Joe Biden unveiled a $ 2 trillion package primarily designed for bridges, roads and other transportation initiatives. The proposal also calls for a $ 50 billion investment in semiconductor manufacturing and research.

A global chip shortage, compounded by strong demand for computers and other tech products during the coronavirus pandemic, has put pressure on U.S. manufacturers. For example, Ford said on Wednesday it would cut production of cars at several North American factories due to the low supply of semiconductors.

Raimondo, who left the governor’s house of Rhode Island to join the Biden administration, said semiconductors are “the building blocks of a future economy and a digital economy.” With investments in semiconductor manufacturing, this will pave the way for basic research, more foundry jobs, vocational training and advanced manufacturing, she said.

“I hope that when businesses big and small get a chance to look at this package, they see that it’s all about competing and winning now and in the future, and that’s good for. business and good for workers ”. she says.

The Biden administration aims to have an infrastructure bill passed by this summer. Dubbed “America’s Jobs Plan,” it includes spending to fight climate change, improve drinking water infrastructure, expand broadband access, and lay the foundation for electric vehicle capabilities.

The package could face some hurdles in Congress, despite the Democrats’ power advantage. Democrats hold a slight majority in the House and a 50-50 tiebreaker in the Senate. However, Republicans are preparing to oppose the size of the package and the White House’s plan to pay for it.