Congress passed the CHIPS Act on Thursday, July 28, representing the most significant investment in domestic technology manufacturing in U.S. history. It will provide $52 billion in funding that will spur semiconductor manufacturers across the country to build vital components in America, creating thousands of jobs and securing a supply chain for American industries that rely on them.
“MICHauto and its members celebrate the passage of this key bipartisan legislation,” said Glenn Stevens Jr., executive director of MICHauto and vice president of automotive and mobility initiatives for the Detroit Regional Chamber. “The CHIPS Act will strengthen domestic resilience by onshoring production of the most vital components to the automotive industry while reducing reliance on foreign suppliers at one of the most challenging periods of international economic competition. By bolstering production capabilities, this investment will secure Michigan’s continued automotive manufacturing leadership.”
The Chamber And MICHauto’s Role
In March 2022, MICHauto hosted Sen. Gary Peters (D-MI) for a field hearing at the Detroit Regional Chamber headquarters in Detroit, offering testimony on the industry’s most pressing issues, including supply chain shortages and how the CHIPS Act could resolve those challenges.
Additionally, in May 2022, the Chamber joined over 200 organizations to sign the “CHIPS for America Act” coalition letter sent to Members of the United States Congress. As stated in the letter, “The demand for semiconductors has outstripped supply. Approval of funding provisions would help meet this long-term challenge by incentivizing semiconductor research, design, and manufacturing in the United States.”
Economic Impact
The shortage’s impact has affected every corner of the state. Of the $52 billion of funding within the act, $2 billion will be dedicated to the production incentivization of the “mature node” semiconductors used by automakers and parts suppliers. For Michigan, it means its automakers can ramp up manufacturing efforts, creating thousands of good-paying jobs for Michiganders, and lowering the price point of their vehicles.
Further, other Michigan business sectors will once again be able to get the silicone supply they need to produce other essential and critical products such as medical equipment, agricultural machinery, and radiation-proof chips for our national defense industrial base. This will strengthen the U.S. economy, national security, and supply chain resilience and increase the supply of chips crucial to our entire economy.
The legislation is now headed to President Biden’s desk for signature.