U.S. Commerce Secretary Gina Raimondo informed CNBC’s Jim Cramer on Monday that she thinks GlobalWafers will follow through on its strategy to construct a silicon wafer factory in Texas– however just if Congress passes financing for the CHIPS for America Act by the time the August recess starts.
“This financial investment that they’re making rests upon Congress passing the CHIPS Act[funding] The CEO informed me that herself, and they repeated that today,” Raimondo stated in an interview on “Mad Money.”
“It has to be done before they go to August recess. I don’t know how to say it any more plainly. This deal … will go away, I think, if Congress doesn’t act,” she included.
GlobalWafers, a Taiwan- based semiconductor silicon wafer company, stated Monday that it prepares to construct a center to produce the part in Sherman,Texas The center might produce as much as 1,500 tasks and produce 1.2 million wafers a month, according to the U.S. Commerce Department.
The CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Act incentivizes financial investment in the U.S. semiconductor market. While it was passed in January 2021, a financing bundle has actually not been authorized by Congress.
Supply chain snarls have actually kept a range of markets, most significantly the automobile market, from having the ability to protect semiconductor chips, all while need skyrockets.
“Semiconductor demand is going to double in the next 10 or 11 years. It takes a couple of years to get a new facility up and running, which means these companies have to make their decisions now. GlobalWafer has made the announcement today because they need to have the cement in the ground at the facility in November,” Raimondo stated.
The commerce secretary, who has actually formerly rallied for Congress to support a more robust American semiconductor market to rely less on foreign providers, repeated that time is of the essence.
“It’s time, I think, for people to get much more practical. … Everyone has to realize you’re not going to get everything you want. We have to winnow this down to the essential items, get this passed and move quickly,” she stated.
Sign up now for the CNBC Investing Club to follow Jim Cramer’s every relocation in the marketplace.
Disclaimer
Questions for Cramer?
Call Cramer: 1-800-743- CNBC
Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram
Questions, remarks, ideas for the “Mad Money” site? madcap@cnbc.com
