President Biden Signs CHIPS and Science Act to Lower Costs, Bring Jobs Home, and Strengthen our National Security
Stabenow and Peters Led Effort to Provide Specific Support for U.S. Auto IndustryWednesday, August 10, 2022
WASHINGTON – President Joe Biden signed the CHIPS and Science Act into law today, which includes key provisions that U.S. Senators Debbie Stabenow (D-MI) and Gary Peters (D-MI) secured for the U.S. auto industry. The Senators led the effort to provide specific support for the U.S. production of semiconductor technologies for the auto industry. This critical law will lower costs for the products American families depend on, bring high-quality jobs home, rebuild the U.S. semiconductor industry, and strengthen America’s national security.
“From cars to home appliances to cellphones, our everyday lives depend on semiconductor chips. This shortage has hurt Michigan autoworkers, businesses and families,” said Senator Stabenow. “That’s why I led the effort with Senator Peters to secure dedicated funding for chips used by the auto industry. With President Biden’s signature today, we’re going to make important investments in American manufacturing while lowering costs, bringing hundreds of thousands of jobs home, and strengthening our national security.”
“The CHIPS and Science Act is a gamechanger for Michigan workers, manufacturing and our economy,” said Senator Peters. “I was proud to lead the charge with Senator Stabenow to secure funding that will boost domestic manufacturing of semiconductor chips, including for our auto sector, and officially get this critical legislation across the finish line. Now that President Biden has signed this into law, we will strengthen our supply chains, support more good-paying jobs, lower costs for families, and bolster our national security.”
The CHIPS and Science Act invests $54.2 billion to bring chip manufacturing back home including:
- $39 billion in funding to build, expand, or modernize domestic facilities and equipment for semiconductor fabrication, with specific funding for microchips used by the auto industry.
- $12.5 billion in research and development to promote American leadership in advanced semiconductors and 5G communication.
- $2.7 billion for strengthening supply chains and semiconductor workforce development, including in economically disadvantaged areas.
- A 25% Investment Tax Credit for investments in semiconductor manufacturing.
The law also invests $170 billion in research and development for cutting-edge scientific advancements.
According to a recent study, an investment of $50 billion to incentivize domestic semiconductor manufacturing would create 280,000 new jobs in the U.S. economy, of which 42,000 would be directly employed in the semiconductor industry. It would ultimately add an estimated $24.6 billion annually to the U.S. economy over the next five years.
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