Stabenow and Peters Led Effort to Provide Specific Support for U.S. Auto Industry
WASHINGTON – U.S. Senators Debbie Stabenow (D-MI) and Gary Peters (D-MI) today announced that the U.S. Senate passed the CHIPS and Science Act. This critical legislation will lower costs for the products American families depend on, bring high-quality jobs home, rebuild the U.S. semiconductor industry, and strengthen America’s national security. Senators Stabenow and Peters secured major support for the U.S. production of semiconductor technologies for the auto industry as part of this effort.
“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.”
“Passage of the CHIPS and Science Act is a huge win for Michigan workers, Michigan manufacturing, and Michigan’s economy,” 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. Now, I urge the House to quickly pass this bill, and send it to the President to sign it into law.”
“MEMA congratulates the U.S. Senate on the passage of the CHIPS and Science Act that enhance the U.S. vehicle and parts manufacturing by addressing the severe U.S. chips shortages. The funding of the CHIPS Act will allow the U.S. to establish a more reliable domestic supply of mature node chips for the future, reducing the strain on manufacturers throughout the country,” said MEMA President & CEO Bill Long.
“Like other automakers, Stellantis has been impacted by the ongoing shortage of semiconductors, particularly the legacy and mature nodes most often used in automobiles and other critical industries here in the United States. We applaud the Senate for passing legislation to incentivize the reshoring and expansion of domestic chipmaking capacity, and we thank Senator Stabenow and Senator Peters for their leadership in this issue,” said Stellantis North America Senior Vice President of Purchasing & Supply Chain Marlo Vitous.
“As America’s No. 1 vehicle manufacturer, assembling more vehicles and employing more hourly workers in the U.S. than any other automaker, Ford applauds the Senate for its bipartisan passage of the CHIPS and Science Act. This legislation will empower the United States to lead in the global transition to electric and connected vehicles and alleviate supply constraints caused by the global shortage of legacy semiconductor chips our industry needs. Ford has announced nearly $14 billion in U.S. EV and battery investments in the last year alone, and CHIPS will help make those manufacturing lines hum with exciting vehicles our customers love,” said Ford Motor Company Chief Policy Officer and General Counsel Steven Croley.
“General Motors applauds the bipartisan support in the U.S. Senate of the CHIPS and Science Act, and we thank Senators Stabenow and Peters for their leadership on this issue that is of the utmost importance to the U.S. automotive manufacturing sector and the 10.3 million jobs the industry supports. This legislation represents an important step to ensure that the U.S. is positioned to maintain and enhance its place as the leader in automotive innovation, and we urge the swift passage by the U.S House of Representatives to see this enacted into law,” said General Motors Vice President of External Affairs Elizabeth Reicherts.
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.
MBN had the senators’ comments while the bill was nearing passage in this report:
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Gov. Whitmer Statement on Senate Passage of CHIPS+ Act
Bipartisan legislation will face the chip crisis head-on, lower costs, shore up national security, boost domestic manufacturing, create and protect tens of thousands of good-paying jobs
LANSING, Mich. – Governor Gretchen Whitmer issued the following statement after the United States Senate passed legislation including the Creating Helpful Incentives for the Production of Semiconductors for America (CHIPS) Act.
“The Senate’s bipartisan passage of the CHIPS Act is a win for Michigan’s workers, manufacturers, and consumers.
“This game-changing bill will make once-in-a-generation investments to set up the United States for decades of economic growth by bringing this vital supply chain home, creating and protecting tens of thousands of good-paying jobs, and lowering costs for families.
“I am grateful to Senator Stabenow and Senator Peters for leading on this issue in the Senate and working across the aisle to get it done. When it is signed into law, the CHIPS+ Act will shore up our supply chain and support companies based in Michigan including our auto industry, homegrown chip manufacturer Hemlock Semiconductor, and other high-tech firms including SK Siltron and KLA.
“In the days ahead, I am confident that thanks to the strong support of our Michigan delegation, the House of Representatives will pass this bill, and I urge them to send it to the president’s desk as quickly as possible so we can get the incentives laid out in the legislation out the door, build on Michigan’s economic momentum, and ultimately lower costs for Michiganders. I am proud that we are showing the world that the United States is the place to build the future. Let’s keep moving Michigan forward.”
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, and earlier this year, Ford invested $2 billion creating 3,200 jobs. Signing the CHIPS+ 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. Fully funding the CHIPS+ 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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