The steel industry is a major supplier to automotive industry, which has been recently hit badly by chip supply challenges.
SEATTLE (Scrap Monster): The American Iron and Steel Institute (AISI) urged the U.S. Senate to pass the “CHIPS Act”, when it comes for debate in the Congress this week. Furthermore, it extended strong support to the important legislation.
In a letter addressed to Senate Majority Leader Charles Schumer and Minority Leader Mitch McConnell, Kevin Dempsey, President and CEO, AISI noted that the CHIPS Act would promote much-needed new investment in semiconductor manufacturing in the country. The , domestic manufacturing of microchips is essential to ensuring that the U.S. maintains a strong manufacturing base, which in turn is essential for the national and economic security, the letter said.
According to AISI, semiconductors are a critical input for key manufacturing industries, such as the automotive industry. The steel industry is a major supplier to automotive industry, which has been recently hit badly by chip supply challenges.
The steel industry currently accounts for nearly 54% of the mass of the average North American vehicle. The steel industry plays a key role in manufacturing and supplying advanced steel products needed in the production of new generation electric vehicles (EVs). For the industry to tap maximum benefits out of this situation, the production of microchips and other important manufactured components must be re-shored.
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