Crain’s Detroit Business
Minnah Arshad
Aug. 8, 2022
Detroit Mayor Mike Duggan will be at the White House on Tuesday morning to witness President Joe Biden sign the Creating Helpful Incentives to Produce Semiconductors, or CHIPS, Act into law.
“The shortage of semiconductor chips has posed significant challenges for automakers, which represent a major part of Detroit’s and the nation’s economy,” the mayor’s office said in a news release Monday.
The $280 billion bill passed the House in a 243-187 vote with bipartisan support on July 28. The legislation will provide $52 billion in subsidies to domestic semiconductor manufacturers, which are a critical component of automobiles. It also includes an investment tax credit for chip plants estimated at $24 billion, according to the city’s release.
In addition to motor vehicles, chips are used in cellphones, military weapons, medical equipment and other technology. The chip shortage has affected multiple industries by way of price hikes and supply chain issues.
Duggan is “fully supportive” of the legislation, a spokesperson told Crain’s. Last Tuesday, Gov. Gretchen Whitmer also expressed support for the bill and signed an executive directive guiding the implementation of the CHIPS Act in Michigan.
“The bipartisan CHIPS and Science Act will make a once-in-a-century investment in American industry to 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,” the governor said in a news release.
The ceremony will be livestreamed at 10 a.m. Tuesday at www.whitehouse.gov/live.
