U.S. commerce secretary presses lawmakers to greenlight $52 billion for chipmaking

Lawmakers have so far failed to reach consensus on a final version of the sprawling package

U.S. Commerce Department Secretary Gina Raimondo on Monday stepped up pressure on Congress to approve $52 billion in funding for chipmakers to expand operations, warning that firms would abandon American expansion plans without the legislation.

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"Mark my words ... if Labour Day comes and goes and this Chips Act isn't passed by Congress, these companies will not wait and they will expand in other countries," she warned in an interview on CNBC.

Both houses of Congress have passed versions of legislation to make the United States more competitive with China that include the chip funding.

However, lawmakers have so far failed to reach consensus on a final version of the sprawling package, despite a global chip crunch.

Raimondo's warning came after Taiwan's GlobalWafers announced plans earlier on Monday to build a $5 billion plant in Sherman, Texas to produce the silicon wafers needed for chipmaking. Raimondo said the company's CEO told her the investment was contingent on Congress approving the funding.

"The consequences to our national security are grave. If we don't get this passed, and if you're not going to be able to get everything you want in this, it's time to move on because we cannot wait," she admonished lawmakers.