Zumbrota car dealer reacts to semiconductor bill

Published: Jul. 26, 2022 at 10:56 PM CDT
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ZUMBROTA, Minn. (KTTC) – The U.S. Senate has voted to advance a bill designed to boost the production of chips needed for electronics.

The Chips Act would provide $52 billion in grants and other incentives for the semiconductor industry.

It would also provide a 25 percent tax credit for companies that build chip plants in the U.S.

There’s been an international chip shortage after some chip plants had to close during the pandemic.

Chips are used in almost every device including toys, vacuums and cars.

The chip shortage has burdened car manufacturers and dealerships.

Some manufacturers were forced to make cars without chips that are used for car accessories like a back camera, or heated seats.

The owner of Zumbrota Ford said his business would normally have 120 new vehicles on the lot, but because of the chip shortage, the dealership has 50 new vehicles.

He believes the bill can help the country.

“Due to our supply chain issues for the last couple of years. I’m all for building an America and buying American. I think the more that we can have manufactured and marketed in America the better off we’ll be,” said Steve Johnson, Zumbrota Ford owner.

The bill now goes to the U.S. House.

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