Senate Passes 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, July 27, 2022
WASHINGTON - U.S. Senators Debbie Stabenow (D-MI) and Gary Peters (D-MI) today announced that the U.S. Senate passed the CHIPS and Science Act. This critical legislation 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. Senators Stabenow and Peters secured major support for the U.S. production of semiconductor technologies for the auto industry as part of this effort.
“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. This bill makes important investments in American manufacturing while lowering costs, bringing hundreds of thousands of jobs home, and strengthening our national security.”
“Passage of the CHIPS and Science Act is a huge win for Michigan workers, Michigan manufacturing and Michigan’s 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. The CHIPS and Science Act will strengthen our supply chains, support good-paying jobs, lower costs for families and bolster our national security. Now, I urge the House to quickly pass this bill, and send it to the President to sign it into law.”
“MEMA congratulates the U.S. Senate on the passage of the CHIPS and Science Act that enhance the U.S. vehicle and parts manufacturing by addressing the severe U.S. chips shortages. The funding of the CHIPS Act will allow the U.S. to establish a more reliable domestic supply of mature node chips for the future, reducing the strain on manufacturers throughout the country,” said MEMA President & CEO Bill Long.
“Like other automakers, Stellantis has been impacted by the ongoing shortage of semiconductors, particularly the legacy and mature nodes most often used in automobiles and other critical industries here in the United States. We applaud the Senate for passing legislation to incentivize the reshoring and expansion of domestic chipmaking capacity, and we thank Senator Stabenow and Senator Peters for their leadership in this issue,” said Stellantis North America Senior Vice President of Purchasing & Supply Chain Marlo Vitous.
“As America's No. 1 vehicle manufacturer, assembling more vehicles and employing more hourly workers in the U.S. than any other automaker, Ford applauds the Senate for its bipartisan passage of the CHIPS and Science Act. This legislation will empower the United States to lead in the global transition to electric and connected vehicles and alleviate supply constraints caused by the global shortage of legacy semiconductor chips our industry needs. Ford has announced nearly $14 billion in U.S. EV and battery investments in the last year alone, and CHIPS will help make those manufacturing lines hum with exciting vehicles our customers love,” said Ford Motor Company Chief Policy Officer and General Counsel Steven Croley.
“General Motors applauds the bipartisan support in the U.S. Senate of the CHIPS and Science Act, and we thank Senators Stabenow and Peters for their leadership on this issue that is of the utmost importance to the U.S. automotive manufacturing sector and the 10.3 million jobs the industry supports. This legislation represents an important step to ensure that the U.S. is positioned to maintain and enhance its place as the leader in automotive innovation, and we urge the swift passage by the U.S House of Representatives to see this enacted into law,” said General Motors Vice President of External Affairs Elizabeth Reicherts.
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 bill 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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