Watlow Electronic Co. weighs in on Chips Act

Published: Jul. 25, 2022 at 10:55 PM CDT
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ROCHESTER, Minn. (KTTC) – Federal efforts are underway to help ease the chip shortage.

President Biden is asking Congress to pass the Chips Act, a bipartisan bill that’s established to boost semiconductor chip production.

The bill would provide $52 billion dollars for the semiconductor industry and a 25% tax credit for companies that build chip plants in the U.S.

“Semiconductor chip manufacturers and producers, and this bill is designed to help them become more competitive in the U.S. and offset the recent competition from other parts of the world,” said Bob Moore, director of marketing communications for Watlow electronic manufacturing company.

Watlow is also a key player in semiconductor production.

“We actually produce products that help semiconductors produce their chips,” Moore. “This worldwide demand is not going away anytime soon and with the market already being constrained and demand increasing it’s a challenge for the industry and everyone involved including Watlow.”

Moore said the federal funding is encouraging for those in the chip-producing industry

“The problem the industry with recently is capacity, so the demand for worldwide microchips and memory, and you know just about every product on earth these days,” he said. “What we’re trying to do is our capacity to help them, so they can produce and get more output.”

The bill is now in the U.S. Senate’s hands.

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