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Despite CHIPS Act, consumers could keep waiting for price relief

In the Renton warehouse for Metropolitan Appliance, most of the products need computer chips.

“Computer chips are in everything,” said company president Aaron Freedman.

Chips are in everything from phones to cars, and many of the chips are made overseas.

“We saw in the pandemic that the shortage in the supply chain of semiconductors was affecting everything,” said Sen. Maria Cantwell (D-Wash.).

Cantwell pushed hard to pass the CHIPS Act and stood behind President Biden as he signed it Tuesday.

It gives a $280 billion boost to the American semiconductor industry, incentivizing companies to build chips in the United States.

The idea is to increase supply and lower prices.

KIRO 7 asked Cantwell how long consumers will have to wait before they see price relief.

“There’s already a lot of discussion on what’s going to happen, but there’s a dozen facilities that are already in the next few months making new investments here in the United States,” Cantwell said.

Cantwell said that will send a “price signal” even before new factories come online.

One Seattle-area new car dealer estimated it would take 12-18 months before relief comes to his industry.

Used car dealer George Riad made a similar prediction.

“It might take another year or two before things change and come around to a somewhat normal used car market,” Riad said.

As for products like refrigerators, Freedman said there are other factors affecting supply and prices.

“Chips are a part of it, but it’s not substantive for what’s preventing the products from getting into our barn,” Freedman said.

He said that’s because appliances have a lot of components, and many of them had supply chain disruptions, like foam for refrigerators.