Heads to President to be Signed into Law as Peters and Stabenow Led Effort to Provide Specific Support for U.S. Auto Industry

WASHINGTON, DC – After leadership from U.S. Senators Gary Peters (D-MI) and Debbie Stabenow (D-MI), the CHIPS and Science Act heads to the President’s desk to be signed into law. This critical legislation will lower costs for the products American families depend on, bring high-quality jobs home, rebuild the U.S. semiconductor sector and strengthen America’s national security. Senators Peters and Stabenow secured major support for the U.S. production of semiconductor technologies for the auto industry as part of this effort. The bill passed the Senate Wednesday, and after advancing through the House today will be sent to the President for signature. 

“The CHIPS and Science Act is a huge win for Michigan workers, Michigan manufacturing and Michigan’s economy – and I’m pleased to see it headed to the President to be signed into law,” 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.” 

“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.” 

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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