WASHINGTON– Commerce Secretary Gina Raimondo stated Wednesday that the U.S. is thinking about working together with India on specific production tasks in order to increase competitors versus China.
Raimondo informed Jim Cramer on CNBC’s “Mad Money” that she will go to India in March with a handful of U.S. CEOs to go over an alliance in between the 2 countries on producing semiconductor chips. The Commerce Secretary likewise reviewed a few of President Joe Biden’s discuss American production from his State of the Union address on Tuesday.
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“We stopped making things,” Raimondo stated. “I think, in 1990, there were like 350,000 people working in the chip industry in America. Now it’s like 160,000.”
Biden’s CHIPS and Science Act, signed into law in August, provided $52 billion for U.S. business to purchase chip production. The U.S. semiconductor market utilized more than 277,000 employees in 2021, according to the Semiconductor Industry Association, however it made 0% of the world’s supply of semiconductors since September 2022.
In contrast, Taiwan and South Korea make up 80% of the worldwide foundry market for chips. TSMC, the world’s most sophisticated chipmaker, is likewise headquartered inTaiwan But a collective effort in between the U.S. and the Indo-Pacific “quad” area might decrease the worldwide dependence on Taiwanese semiconductors. In September 2021, India, Japan and Australia revealed strategies to develop a semiconductor supply chain effort to protect access to semiconductors and their elements.
Raimondo stated that India is “making a lot of the right moves.”
“It’s a large population. (A) lot of workers, skilled workers, English speakers, a democratic country rule of law,” she stated.
But the Commerce Secretary stated the southeast Asian country need to adhere to labor requirements as part of any offer, specifically due to India’s intake of Russian oil. The G-7 nations, Australia and the European Union have actually released rate caps on the expense of Russian oil items to limit the Kremlin’s access to a prospective financing source for its war on Ukraine while still keeping an oil supply on the worldwide market.
“I’m running the Indo-Pacific economic framework,” Raimondo stated. “So we have 13 countries including India. And we’re saying to them, look, sign up at the government-to-government level to labor standards, environmental standards, anti-corruption standards, rule of law standards. And in return, it’ll unlock U.S. business, U.S. capital jobs in India.”
Raimondo likewise stated she supports reinvesting the cash from Biden’s 1% excise tax on stock buybacks for industries into the economy. Buybacks attract a few of the country’s biggest financiers and corporations.
“I’m strongly with the President that we ought to raise taxes on the wealthiest and on corporations close some loopholes and take that money and make investments,” she stated. “You want women to go back to work? Childcare (has to) be provided, it’s too expensive. So, we need to raise taxes in some ways and then make investments to make the economy stronger.”
