The White House warned U.S. lawmakers on Wednesday of the risk the semiconductor shortage could pose to the American economy.
To address this issue, the White House called for $52 billion in funding to be used to subsidize production.
“A significant interruption to our supply of semiconductors could cause historic damage to the U.S. economy – damage far greater than the impact of chips shortages on the American auto industry right now – and would undercut our technological competitiveness and military advantages over adversaries globally,” the White House said.
The semiconductor shortage left several industries unable to meet their production targets. Apart from using financial backing to address the situation, the U.S. government is also trying to reduce dependence on other countries for semiconductors.
Participants in the briefing include Commerce Secretary Gina Raimondo, Deputy Defense Secretary Kathleen Hicks and National Security Advisor Jake Sullivan.
For more information, read the original story in Reuters.