US Commerce Secretary Gina Raimondo told CNBC’s Jim Cramer Monday that she believes GlobalWafers will pursue its plan to build a silicon chip plant in Texas — but only if Congress approves CHIPS for America funding by the time the August recess begins.

“This investment they are making is conditional on Congress passing the CHIPS Act.” [funding]. The CEO told me that herself, and I repeated that day, “Raymondo said in an interview on”money mad. “

“It has to be done before they go into August recess. I don’t know how to say it clearly. This deal … is going to go away, I think, if Congress doesn’t take action,” she added.

GlobalWafers, a Taiwan-based silicon semiconductor wafer company, said Monday that it plans to build a component production facility in Sherman, Texas. The facility can create up to 1,500 jobs and produce 1.2 million chips a month, according to US Department of Commerce.

The CHIPS (Create Beneficial Incentives for Semiconductor Production) America Act stimulates investment in the US semiconductor industry. While it was passed in January 2021, Congress did not approve the funding package.

Crises in the supply chain have prevented a variety of industries, most notably the automobile industry, from being able to secure semiconductor wafers, all as demand soared.

“Demand for semiconductors will double in the next 10 or 11 years. It takes two years to set up and operate a new facility, which means these companies must make their decisions now. GlobalWafer made the announcement today because they need cement in the ground at the facility in November,” Raimundo said. “.

The Commerce Secretary, who previously mobilized for Congress to support a more robust US semiconductor industry to rely less on foreign suppliers, reiterated that time is of the essence.

“It’s time, I think, for people to get more practical…Everyone has to realize that you’re not going to get everything you want. We have to get to the basics, get over this and move quickly,” she said.

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