Made in the USA microchips: The plan and the crisis in the auto industry

TAYLOR, Mich. (WXYZ) — As you do your holiday shopping, you’ll notice more shortages than ever of high tech items that require microchips. It is hitting all economic sectors in one way or another.

Chips were invented in the U.S. But now, only 12% are made here. Of the more sophisticated chips, 0% are made in the USA. Those are made in Taiwan and China.

The Detroit Big Three automakers have been forced to slow or stop production. The industry will lose out on making and selling 1.2 million vehicles this year, costing $210 billion.

The CHIPS Act has passed the U. S. Senate. It will provide $52 billion to the U.S. Department of Commerce for grants and loans for microchips made in the USA. 

“In order for a company to receive any money, they have to build a facility in America, employ Americans. And as I said earlier, there will be numbered strings attached,” Commerce Secretary Gina Raimondo said during a roundtable discussion in metro Detroit,.

That discussion was Monday morning inside UAW Region 1-A in Taylor.

“We're talking about the most critical issue to Michigan right now,” U.S. Rep. Haley Stevens said.