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Gov. Whitmer Leads Bipartisan Coalition of Governors Calling on Congress to Fund the CHIPS Act


February 24, 2022 



Gov. Whitmer Leads Bipartisan Coalition of Governors Calling on Congress to Fund the CHIPS Act 

Governors urge Congress to move swiftly to fully fund the CHIPS Act to protect and create thousands of jobs and attract investment to states  


LANSING, Mich. - Today, Governor Gretchen Whitmer, joined by Governor Newsom (CA), Governor Lamont (CT), Governor Little (ID), Governor Pritzker (IL), Governor Holcomb (IN), Governor Kelly (KS), Governor Beshear (KY), Governor Baker (MA), Governor Sisolak (NV), Governor Murphy (NJ), Governor Lujan Grisham (NM), Governor Hochul (NY), Governor Cooper (NC), Governor DeWine (OH), Governor Brown (OR), Governor Wolf (PA), Governor Cox (UT), Governor Scott (VT), Governor Inslee (WA), Governor Evers (WI), and Governor Gordon (WY) sent a letter to Congressional leadership urging quick passage of economic competitiveness legislation that includes full funding for the Creating Helpful Incentives for the Production of Semiconductors for America Act, or CHIPS Act. The $52 billion in incentives provided under the CHIPS Act to boost domestic chip production will help the United States regain its leadership in semiconductor manufacturing and support the businesses and workers who make the products dependent on these chips.  


"We are encouraged that Congress is moving forward on a landmark bill to improve our economic competitiveness and boost domestic chip production," said Governor Gretchen Whitmer. "The chip shortage has hit working families and businesses in Michigan and many other states hard. Thousands of jobs up and down the auto supply chain and across multiple industries are at risk, and the solution is clear-fund the CHIPS Act now. If we're going to protect working families and maintain America's competitive edge, Congressional leaders must come together to get this done. I am grateful for the Michigan Congressional delegation's work to include the CHIPS Act in both the House and Senate competitiveness packages. Passage of an investment tax credit for semiconductor manufacturing and design, as provided in the FABS Act, would be another significant tool in our toolboxes to attract chip-focused investment. I hope that both chambers can now come together to send a unified package that fully funds these important incentives to the president's desk as fast as possible so we can address this crisis and further Michigan's economic momentum." 


CHIPS Act Legislative Status 

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. 


Now, both the Senate and House have passed bills funding the CHIPS Act. Currently, both chambers, led by members of Michigan's congressional delegation, are working to reconcile differences between their two bills and send a final version to the president's desk.  


The governors wrote the attached letter 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. 


Read the letter here


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.  


Recently, 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. Passing 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.  


Passing 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.