Governor continues leading the charge to face the chip crisis head-on, protect manufacturing jobs, and move supply chain from China to Michigan
WASHINGTON, DC — Today, Governor Gretchen Whitmer joined President Biden, Commerce Secretary Gina Raimondo, Director of the National Economic Council Brian Deese, Indiana Governor Eric Holcomb, and key private sector leaders at the White House to speak about economic competitiveness legislation and urge full funding for the CHIPS Act. Governor Whitmer has been a national leader on this issue, leading bipartisan efforts to urge full funding of the CHIPS Act, which would boost domestic chip production, shore up American manufacturing, and support businesses and workers across Michigan.
“The CHIPS Act would boost domestic chip manufacturing and research, spur innovation, and help manufacturers avoid costly delays,” said Governor Gretchen Whitmer. “It would create thousands of high-skill, good-paying jobs and show businesses that the United States is the place to build the future. It would lower costs for American families by breaking up delays in our supply chain. This is game-changing, bipartisan legislation that will make a real difference in people’s lives if we get it done. It’s the kind of bill that can set us up for decades of economic success.”
The full text of remarks as prepared for delivery can be found below.
“Expanding Michigan’s manufacturing strength and leadership has been a priority for our administration since day one,” said Lt. Governor Garlin Gilchrist. “The CHIPS Act will supercharge these efforts. It will increase Michigan’s economic competitiveness, create good-paying jobs in Michigan, and grow our state’s role in building the components, products, and companies of the future. Governor Whitmer and I will continue working with anyone to advocate for this bipartisan legislation, continue Michigan’s tradition of innovation, and create prosperity for Michigan communities.”
"Governor Whitmer immediately understood that the semiconductor shortage would negatively impact the auto industry and auto workers,” said Governor Matt Blunt, President of the American Automotive Policy Council. “Not only has she personally been a strong advocate for vital CHIPS funding, but she has also organized meaningful bipartisan gubernatorial support to address this critical supply chain issue."
“A strong and reliable supply of semiconductors is good for America’s workers, economy and automotive industry,” said the Alliance for Automotive Innovation. “Our members appreciate Governor Whitmer’s bipartisan leadership urging Congress to fully fund the CHIPs Act as soon as possible. These programs strengthen U.S. competitiveness by supporting a robust and resilient domestic semiconductor supply chain which is integral to the future of automotive technology and innovation.”
Governor Whitmer’s Leadership on CHIPS
After the U.S. Senate passed the U.S. Innovation and Competition Act in June 2021, Governor Whitmer led a group of bipartisan governors urging the U.S. House of Representatives to also pass economic competitiveness legislation funding the CHIPS Act. A few months after the letter, the House passed the America COMPETES Act, which includes funding for the CHIPS Act, on February 4, 2022. A few weeks ago, on February 24, 2022, the governor led an even larger group of 21 bipartisan governors calling for final passage of economic competitiveness legislation with full funding for the CHIPS Act.
Both the Senate and House have now passed bills with funding for the CHIPS Act. Both chambers are now working to reconcile the two bills before a final version is sent to President Biden’s desk.
Governor Whitmer attended the White House event to urge Congress to take swift bipartisan action to reconcile the two bills to get to the president for his final sign-off as soon as possible so Michigan’s economy can continue growing.
CHIPS Act Opportunity
The CHIPS Act would 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 Act would provide 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. Funding the CHIPS Act paves the way for similar projects. The CHIPS Act will revitalize chip manufacturing and design in the U.S., leading to more transformational projects that will invest billions into our communities and create 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.
Fully funding the CHIPS Act will bring chip manufacturing back home, creating and protecting thousands of good-paying jobs, growing Michigan’s economy, and lowering costs for families.
Remarks as prepared for delivery:
Today, we are coming together to talk about growing the American economy, bringing manufacturing back home to places like Michigan, creating good-paying jobs for domestic workers, and lowering costs for families.
- I know that I and so many fellow governors—Republicans and Democrats—are encouraged to see Congress take economic competitiveness seriously.
- Right now, thousands of jobs up and down the auto supply chain and many other industries are at risk.
- Chip shortages have impacted more than 575,000 American jobs, and in 2021 alone, automakers in North America lost production of an estimated 2.2 million vehicles, equaling over 3,000 days of work.
- These shortages are driving up costs too, impacting American families.
- Increasing chip manufacturing at home would reduce supply chain and transportation delays, lowering the cost of cars, consumer electronics, and so much more. Really, it’s simple: the more we make here, the more jobs we create, and the fewer supply chain issues we encounter.
Also, this is a national security issue. If we do not act, America’s future as the unparalleled center of innovation and advanced manufacturing is at risk.
- We all know that we must do more to compete on the global stage.
- We cannot allow China to outcompete us on chip manufacturing and dominate everything from electronics to electric vehicles and countless other future technologies that we all need.
- China is our biggest economic and security threat.
- It’s why we worked in Michigan to bring a chip manufacturer to Bay City, bringing supply chain from China back home to Michigan, and creating 150 jobs in the process.
- The future of mobility and manufacturing ought to be stamped with words that make us all proud: “Made in the USA,” or better yet, “Made in Michigan.”
The solution is clear: fully fund the CHIPS Act and pass bipartisan economic competitiveness legislation.
- The CHIPS Act would boost domestic chip manufacturing and research, spur innovation, and help manufacturers avoid costly delays.
- It would create thousands of high-skill, good-paying jobs and show businesses that the United States is the place to build the future.
- It would lower costs for American families by breaking up delays in our supply chain.
- And it would lead to more transformational projects that will invest billions into our communities and create thousands of good-paying jobs.
This is game-changing, bipartisan legislation that will make a real difference in people’s lives if we get it done.
It’s the kind of bill that can set us up for decades of economic success.
- And we have gotten to this point together, by reaching across the aisle to solve a shared problem and drive towards a common solution.
- This process is proof of what’s possible when you work together to get things done.
It’s something we do often in Michigan. Every single bill that I signed since taking office—over 750—have been bipartisan.
- And that bipartisanship has paid off big time.
- Earlier this year, we landed a $7 billion investment from GM, the biggest in GM’s history, because late last year, the state legislature and I worked together to improve Michigan’s economic development tools.
- And we’ve made historic investments in education, roads, our workforce, childcare, and so much more.
- Now, our economy is growing. We have a $7 billion surplus, low unemployment, rising wages, and a manufacturing boom because we worked across the aisle to get things done.
I want to thank you all for being here, especially my fellow Michiganders. I look forward to further discussion.
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