The United States would face a “deep and immediate recession” if access to Taiwan’s computer chips plants are cut off, said Commerce Secretary Gina Raimondo on July 21 to CNBC.
The secretary’s comments come as Congress is gathering key votes on a bill to fund semiconductor manufacturing at home, called the CHIPS Act.
The Senate voted 64-34 on July 20, to advance the $50 billion bill through a procedural hurdle aimed at boosting U.S. domestic chip production.
Although many of the chips used are designed domestically, American companies, the government, and the military buy 90 percent of the leading-edge semiconductor chips in use from Taiwan, mostly from the Taiwan Semiconductor Manufacturing Company, the world’s largest chip company….