WASHINGTON, DC – During a Senate Appropriations Subcommittee hearing, U.S. Senator Gary Peters (MI) secured commitments from U.S. Secretary of Commerce Gina Raimondo regarding the implementation of Peters’ provision in the CHIPS and Science Act to support Michigan’s auto sector as well as American consumers, and to provide critical resources for the U.S. Coast Guard Great Lakes Center of Expertise, which Peters authored into law and is now open and conducting research.

The CHIPS and Science Act makes critical investments in domestic semiconductor production. Peters, alongside U.S. Senator Debbie Stabenow, included significant funding in the law to strengthen the production of mature semiconductor chips auto manufacturers rely on. Peters asked Secretary Raimondo how the Commerce Department will ensure federal investments support production of mature – or “automotive-grade” – semiconductor technologies and are not claimed exclusively by leading-edge chip manufacturers. 

“As I have spoken to you about before, a core part of the legislation is onshoring the U.S. supply chain for mature semiconductor chips to lower prices for consumers, create jobs, and ensure that we’re prepared for future disruptions that we certainly saw during the COVID-19 pandemic,” said Senator Peters, Chairman of the Senate Commerce Subcommittee on Surface Transportation, Maritime, Freight, and Ports. “There is no better example in my mind of the need for this than the automobile supply chain. During the pandemic and afterwards, American auto companies saw supply chains cut off… You saw cars lined up in parking lots all ready to be delivered to customers, except they were missing a chip or two, and therefore couldn’t be delivered. That ended up with higher prices, used car markets went up… a really significant disruption from mature chips.” 

“That’s why I authored and fought for a provision in the CHIPS and Science Act that sets aside $2 billion to bring home supply chains for automotive-grade mature chips that we also use in our military systems as well as medical devices that you well know,” Peters continued. 

In response, Secretary Raimondo agreed the lack of mature semiconductor chips is a serious problem for automakers. She also shared that the Commerce Department has already received significant industry interest in expanding American production of mature chips, and expects the Department will allocate even more incentives to this part of the supply chain than required by Peters’ provision. 

To watch video of Peters’ question about the implementation of the CHIPS and Science Act, click here or on the image below. 

Peters also highlighted the important work of the U.S. Coast Guard Great Lakes Center of Expertise, which examines the impacts of oil spills in freshwater environments and helps develop effective responses to protect the Great Lakes against a potential oil spill. Peters asked Commerce Secretary Raimondo to commit to supporting the U.S. Coast Guard’s work in protecting the Great Lakes by securing additional federal funding for the center – which Secretary Raimondo agreed to.

“The Great Lakes are more than just an economic engine and an ecological treasure. It’s basically in the DNA of Michiganders,” said Senator Peters. “An oil spill in the Great Lakes would, without question, be absolutely catastrophic for Michigan, for the economy, and for 40 million people who rely on the Great Lakes for drinking water. So, we need to be doing everything we can to protect them for future generations…. The Center will play a vital role in these efforts by examining the impacts of oil spills in freshwater environments.”

To watch video of Senator Peters’ question about the Great Lakes Center of Expertise, click here or on the image below.

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