Letter to Secretary Raimondo touts state’s strong manufacturing base and skilled workforce, prepares Michigan to compete for investments bringing semiconductor supply chain from China to Michigan
LANSING, Mich. — Friday, Governor Gretchen Whitmer sent a letter to U.S. Secretary of Commerce Gina Raimondo, highlighting Michigan for forthcoming investments from the CHIPS and Science Act. The bipartisan legislation will boost American manufacturing, create and protect tens of thousands of jobs, and lower costs for working families. Michigan is well-positioned to win projects funded by the legislation because of its strong manufacturing base and skilled workforce.
“The bipartisan CHIPS and Science Act will create and protect tens of thousands of jobs, bring supply chain from China to Michigan, and help lower costs for working families on electronics, cars, and so much more,” said Governor Whitmer. “Here in Michigan, we know firsthand how important chips are to the domestic manufacturing supply chain. That is why I will continue to advocate for Michigan to be the premier destination for incoming investments from the CHIPS and Science Act. We have the hardworking people, storied past, and advantageous places to site big projects. We will move fast and compete with anyone to bring home every available resource from the CHIPS and Science Act. We put the world on wheels, built the arsenal of democracy, and now, we will work together to make sure Michigan is the place to build the future.”
The letter can be viewed here.
Competing for CHIPS
In the past year, Michigan has secured bold investments in semiconductor and polysilicon manufacturing.
- Hemlock Semiconductor, a leading provider of high-purity polysilicon products for the electronic and solar power industries, onboarded over 400 full-time employees in Hemlock.
- KLA, a global semiconductor firm, opened its headquarters in Ann Arbor creating 600 good-paying jobs.
- Wacker, a chemical and polysilicon firm, opened a cutting-edge innovation center in Ann Arbor creating 300 good-paying jobs.
- SK Siltron, a semiconductor wafer manufacturer, announced a new facility near Bay City, creating 150 good-paying jobs.
- Calumet Electronics, one of a few American manufacturers producing organic substrate components for microelectronics, announced an expansion creating 80 jobs in the Keweenaw Peninsula.
Governor Whitmer’s CHIPS and Science Act Executive Directive
Governor Whitmer signed an executive directive instructing state departments and agencies to leverage all available resources from the CHIPS and Science Act to continue bringing in projects and jobs to Michigan.
The directive requires each department and agency to identify a designee to facilitate inter-departmental coordination and outreach with potential private sector, higher education, and state partners. It also furthers collaboration with the Michigan Economic Development Corporation (MEDC) to continue attracting long-term, sustainable investments from semiconductor companies around the world.
Additionally, it instructs departments and agencies to identify opportunities for workforce development geared towards the needs of the semiconductor industry, including adapting existing programs, collaborating with higher education institutions, and providing targeted education and training with additional federal resources. Finally, it urges efficient approval of any permits, applications, or requests from the state to avoid duplication or delay.
The directive will empower Michigan to effectively and efficiently deploy incoming resources from CHIPS and Science Act, building on a previous executive directive to streamline the permitting process, including for major projects like semiconductor plants.
Michigan’s Leadership to Deliver CHIPS and Science Act
- June 8, 2021: US Senate passes United States Innovation and Competition Act including provisions from Michigan Senators Peters and Stabenow and funding for chip manufacturing.
- August 24, 2021: Gov. Whitmer announces chip manufacturer SK Siltron to build a production and R&D facility in Bay City area, creating 150 jobs and bringing supply chain from China to Michigan.
- November 11, 2021: Gov. Whitmer leads group of 9 bipartisan governors calling on House to pass CHIPS+.
- February 4, 2022: US House passes the America COMPETES Act, includes funding for CHIPS and Science Act.
- February 24, 2022: Gov. Whitmer leads group of 21 bipartisan governors calling on House and Senate to come together, reconcile differences, and pass legislation with funding for CHIPS and Science Act.
- March 9, 2022: Gov. Whitmer represents Democratic governors at bipartisan roundtable discussion on chips at the White House, urges immediate passage of CHIPS and Science Act to protect good-paying auto jobs in Michigan.
- March 28, 2022: US Senate, including both Michigan Senators, amends and passes America COMPETES Act.
- July 22, 2022: Lieutenant Governor Gilchrist hosts Speaker Pelosi, and Representatives Dingell, Kildee, Stevens, and Levin for a roundtable discussion on urgency of CHIPS and Science Act for Michigan.
- July 27, 2022: US Senate passes CHIPS and Science Act, or CHIPS and Science Act.
- July 28, 2022: US House passes CHIPS and Science Act, sending bill to President Biden’s desk.
- August 2, 2022: Signed an executive directive preparing Michigan to compete for every resource available from the CHIPS and Science Act.
CHIPS and Science Act Opportunity
The CHIPS and Science Act will fund $52 billion in incentives to boost domestic semiconductor production and research, $2 billion of which would be dedicated to incentivizing production of the “mature node” semiconductors used by automakers and parts suppliers. Mature node chips are also used in medical devices, agricultural machinery like farm tractors and combines, as well as radiation-proof chips required by our national defense industrial base.
The CHIPS and Science Act provides a new, powerful tool in Michigan’s economic development toolbox. Increasing domestic chip production near automakers and other manufacturers will spur innovation, reduce inefficiencies, and avoid costly delays, helping Michigan attract long-term, sustainable investments from companies around the world.
Late last year, the Michigan Legislature, businesses, labor, and utilities worked with Governor Whitmer to pass bipartisan economic development legislation that helped Michigan land a $7 billion investment from GM creating and retaining 5,000 good-paying jobs, and earlier this year, Ford invested $2 billion creating 3,200 jobs. Signing the CHIPS and Science Act into law will pave the way for more transformational projects that will invest billions into our communities and create tens of thousands of good-paying jobs.
Chip Crisis Impact
Semiconductor chips are a vital component of many products used by people every day. The global shortage of these chips, exacerbated by the pandemic and supply chain constraints, has impacted people and industries across the country from auto manufacturing to consumer electronics, home appliances, medical devices, agriculture, defense, and more. These shortages have resulted in reduced production and in some cases, idled plants, impacting more than 575,000 auto-related American jobs. In 2021, automakers in North America lost an estimated 2.2 million vehicles, equaling over 3,000 days of work.
This means workers with less income, higher prices at the store, less products for consumers to buy, and an ever-growing dependence on foreign supplies. In the long run, increasing domestic production of chips will protect and create jobs, strengthen our supply chain, and grow the economy. The CHIPS and Science Act will bring chip manufacturing back home, creating and protecting thousands of good-paying jobs, growing America’s economy, and lowering costs for families.
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