Bipartisan, Bicameral Support for the CHIPS Act
Over the last several weeks, Members of Congress from both chambers and sides of the aisle have agreed that the development of advanced semiconductors is of vital national security and economic importance and the manufacturing should remain in the United States. Following the passage of the CHIPS Act last Congress, Members are now discussing how to create incentives to secure semiconductor supply chains. Following yesterday’s Senate Finance hearing where Senators gave statements in support of manufacturing these advanced semiconductors, I gave the following remarks.
These advanced semiconductor chips are in everything from your cellphone to fighter jets. The U.S. must increase our leadership in the future design, manufacturing and development of these chips because it directly impacts our national and economic security. From the bipartisan meeting at the White House to this renewed support in the Senate, I believe Congress is united in the effort to restore semiconductor manufacturing back on American soil.
Praise for the CHIPS Act
Senator Ron Wyden (D-OR):
“It is a recipe for trouble when one single pandemic, natural disaster or terrorist attack can sever brittle supply chains and hobble our economy, threaten American jobs and weaken our national security. That’s why there’s bipartisan interest in building up our domestic manufacturing to bolster the supply of semiconductors and other critical components and products. President Biden ordered a comprehensive review of supply chains in several different areas of our economy and national defense.”
Mike Crapo (R-ID):
“Last year, Senators Cornyn and Warner introduced S. 3933, the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act), which would create a 40 percent refundable investment tax credit for qualified semiconductor equipment or any qualified semiconductor manufacturing facility investment expenditures… Helping U.S. companies strengthen their supply chains to better protect these critical technologies is vital to safeguarding national security and the health of our economy.”
John Cornyn (R-TX):
“If there’s one thing this virus has taught us, it is about the vulnerability of our supply chains, starting with PPE. But it doesn’t end with PPE. Obviously with semiconductors, China is building 17 foundries as we are thinking about building one, or having one built in Arizona. So, I think that this [The CHIPS Act] is a critical one, but it’s not the only critical one.”
Mark Warner (D-VA):
“Unfortunately, we’ve seen America’s share of the semiconductor industry go from 37% in 1990 down to be about 9% by 2030. In the meantime, China has gone in the direct opposite direction, from about 12% of the market to 30% expected in 2030. China, as a matter of fact, is looking at 150 billion dollars of investment in semiconductors.
There’s legislation that was included in the NDAA, the so-called CHIPS Act, that many of the committee members have been supportive of.”
Last year, key provisions of the CHIPS Act passed by overwhelming support in the NDAA. Members, like me, are looking at how we can incentivize U.S. companies in manufacturing these advanced semiconductor chips.