Following the passage of the semiconductor invoice by Congress final week, Gov. Gretchen Whitmer stated Michigan hopes to develop into a hub for microchip producers that offer the auto trade.

Whitmer, in an interview Monday with Automotive Information, stated the state’s “excessive focus” of engineers and its automotive provide chain ought to make it a beautiful choice for chip producers figuring out the place to construct factories within the U.S.

“This is a vital alternative for us to point out the world that we are able to lead,” the first-term Democratic governor stated. “Michigan has a singular set of strengths.”

Each homes of Congress final week handed the CHIPS and Science Act, which incorporates $52 billion for U.S. chip producers and tax credit designed to spur extra home manufacturing of semiconductors. President Joe Biden is predicted to signal the invoice into legislation.

Of that funding, $2 billion is designated for manufacturing of older, “mature node” semiconductors utilized by the auto trade. World auto manufacturing has been rattled by a scarcity of these chips, with greater than 13 million automobiles faraway from automakers’ manufacturing schedules for the reason that begin of 2021, in keeping with an estimate by AutoForecast Options.

“For those who’re driving round Michigan and drive previous a few of these tons with lovely, brand-new automobiles which might be sitting there ready for chips, it is a highly effective reminder that we have got to deliver this superior manufacturing again to our nation,” Whitmer stated.

She stated Michigan is taking a “whole-of-government strategy” to attracting chip producers, together with by investing in infrastructure and training.

The state needs “to be sure that an auto chip producer would see that Michigan is an outstanding place to construct out a fab and begin producing these chips,” Whitmer stated. “We have got an atmosphere that’s hungry.”

Whitmer stated she has spoken with management at Basic Motors and Ford Motor Co. in regards to the chips invoice, saying executives have been “thrilled” to see it handed.

“EVs require a heck of much more chips” than inside combustion engine automobiles, she stated. “This can be a essential element of this transition that we’re seeking to make.”

Whitmer stated it might be essential for congressional Democrats to kind by way of particulars on the extension of federal tax credit for electrical automobiles. A Senate proposal by Democrats Chuck Schumer and Joe Manchin consists of the extension of the $7,500 tax credit score for EV customers however provides stringent essential mineral and battery sourcing necessities for automakers, amongst different guidelines.

Whitmer stated she has spoken with U.S. Rep. Debbie Dingell, D-Mich., in regards to the proposal. Whitmer stated Dingell is conscious of issues home automakers have with a number of the invoice’s language and that Dingell is working with Manchin and others in Congress on the proposal.

“The spirit of it’s one thing that’s essential and that we help, however now we have to ensure we get it proper in order that we are able to help this transition and American jobs,” Whitmer stated.

Automakers and trade commerce teams instructed Automotive Information final week that they have been reviewing the invoice’s language. In an announcement Thursday, GM stated it was wanting ahead to working with Congress on provisions “that will guarantee a degree taking part in subject for all OEMs, incentivize shopper adoption of future electrified choices and make sure the U.S. continues to be a pacesetter on EV innovation and adoption.”

Daniel Ryan, Mazda North American Operations’ vice chairman of presidency and public affairs, stated the automaker was involved that the battery and significant minerals provisions might make it “very troublesome” for automakers to succeed in EV gross sales targets set by the federal authorities.

Audrey LaForest contributed to this report.