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Michigan Congressional Delegation Helps Pass CHIPS and Science Act
July 28, 2022
FOR IMMEDIATE RELEASE:
July 28, 2022
Michigan’s Bipartisan Congressional Delegation Helps Pass CHIPS and Science Act
Republicans and Democrats vote for CHIPS and Science Act to face chip crisis head-on, lower costs, protect national security, boost manufacturing, create and protect tens of thousands of jobs
LANSING, Mich. – Governor Gretchen Whitmer and bipartisan members of Michigan’s congressional delegation issued the following statements after the Creating Helpful Incentives for the Production of Semiconductors for America and Science (CHIPS) and Science Act.
“Today, Team Michigan came together to deliver a historic win by voting to pass the CHIPS and Science Act, a bipartisan bill making game-changing investments in Michigan’s workers, manufacturers, and consumers,” said Governor Whitmer. “I am so grateful to our congressional delegation for working across the aisle to get this done. CHIPS+ will make once-in-a-generation investments to set American up for decades of growth by bringing vital supply chains home, creating and protecting tens of thousands of good-paying jobs, and lowering costs for families. I look forward to utilizing it to its fullest potential so we can build on Michigan’s economic momentum, support tens of thousands of jobs, and lower costs for Michiganders. Together, we will show the world that Michigan is the place to build the future. Let’s keep moving forward.”
“America’s economy and Michigan workers should not have to rely on foreign made semiconductor chips. With this bipartisan bill, we can bring chip production back to Michigan and the United States, helping to lower costs for working families, boost our economy and create good-paying jobs,” said Congressman Dan Kildee (MI-05). “By making these investments, we also strengthen America’s national security and bolster our ability to economically compete with China.”
“Passing the CHIPS Act today is a huge, long-awaited win for Michigan’s workers, our businesses and our national security,” said Rep. Elissa Slotkin (MI-08). By incentivizing companies to build new microchip plants here in the U.S., instead of places like China, this bill helps prevent future shortages like the ones that have shut down auto plant across the country, including GM’s Delta Township and Lansing Grand River plants. After leading a bipartisan task force examining our defense supply chains last year, I also feel strongly that access to American chips is both an economic security and national security issue. By bringing this manufacturing back home, we’re ensuring that we can’t be held hostage by our adversaries in the event of a conflict with countries like China.”
“I voted for the CHIPS and Science Act because I listened to my constituents in Southeast Michigan, including workers in the auto industry who understand that we need to make semiconductors right here in America,” said Rep. Andy Levin (MI-09). After the supply chain issues of the past year, it is clear we need to reverse the misguided trade policies that got us into this mess and start pursuing policies that promote domestic manufacturing.”
“Michigan has felt the chips shortage acutely – throughout the months of negotiations on this bill I continued expressing our State’s urgency for funding and encouraged Members in both Chambers of Congress and both sides of the aisle to stay at the table until we had a deal,” said Rep. Haley Stevens (MI-11). “I am thrilled to see Congress pass the Chips & Science Act to bolster American manufacturing, boost our STEM workforce, and revitalize support for our premier research institutions. I am proud that the bill includes my own CHIPPING IN Act – to develop a diverse and sustainable semiconductor chip workforce here in the U.S.– in addition to my many bipartisan provisions that I helped usher through the House Science Committee. Michigan is uniquely suited to take advantage of these federal incentives – I look forward to partnering with Governor Gretchen Whitmer to ensure Michigan continues to lead the country and the world in innovation.”
“Michigan has been severely hurt by the offshoring of chip production, and it’s time to bring these jobs back home,” said Rep. Debbie Dingell (MI-12). We have witnessed firsthand in the last couple of years as shifts have been cut, workers were laid off, plants have been shuttered, and our domestic manufacturing has slowed to a halt. This investment – especially the $2 billion I secured for mature technology nodes to support the auto industry – will get thousands of Americans back on the job, bring the supply chains home and keep them here, and deliver much needed support to our economy and workers. This isn’t just a manufacturing and jobs issue, but also of vital importance to our national and economic security. We’re at an inflection point for American manufacturing, industry, and innovation, and this legislation is a meaningful step to reduce our foreign dependency and restore our edge against our global competitors. This is good for Michigan, and it’s good for America.”
“We’ve heard loud and clear from Michigan workers and labor unions about the importance of getting people back to work and protecting manufacturing jobs here at home,” said Rep. Rashida Tlaib (MI-13). The CHIPS Act is a key first step towards creating good-paying union jobs and boosting our economy. As these funds are dispersed, we must also ensure that the bill’s labor protections are zealously enforced and corporations are prevented from enriching themselves through stock buybacks, so that these major investments uplift Michigan workers and our communities.”
“The CHIPS Act will lower prices, create good paying jobs, and drive Michiganders forward by boosting domestic semiconductor production and research,” said Rep. Brenda L. Lawrence (MI-14). “I am proud to have advocated for the $2 billion – dedicated to chips used by the auto industry – to help Michigan’s auto manufacturers, parts suppliers, and workers thrive.”
Michigan’s Leadership to Deliver CHIPS and Science Act
- June 8, 2021: US Senate passes United States Innovation and Competition Act including provisions from Michigan Senators Peters and Stabenow and funding for chip manufacturing.
- August 24, 2021: Governor Whitmer announces chip manufacturer SK Siltron to build a production and R&D facility in Bay City area, creating 150 jobs and bringing supply chain from China to Michigan.
- November 11, 2021: Governor Whitmer leads group of 9 bipartisan governors calling on House to pass CHIPS+.
- February 4, 2022: US House passes the America COMPETES Act, includes funding for CHIPS+.
- February 24, 2022: Governor Whitmer leads group of 21 bipartisan governors calling on House and Senate to come together, reconcile differences, and pass legislation with funding for CHIPS+.
- March 9, 2022: Governor Whitmer represents Democratic governors at bipartisan roundtable discussion on chips at the White House, urges immediate passage of CHIPS+ Act to protect good-paying auto jobs in Michigan.
- March 28, 2022: US Senate, including both Michigan Senators, amends and passes America COMPETES Act.
- July 22, 2022: Lieutenant Governor Gilchrist hosts Speaker Pelosi, and Representatives Dingell, Kildee, Stevens, and Levin for a roundtable discussion on urgency of CHIPS+ Act for Michigan.
- July 27, 2022: US Senate passes CHIPS and Science Act, or CHIPS+ Act.
- July 28, 2022: US House passes CHIPS and Science Act, sending bill to President Biden’s desk.
CHIPS and Science Act Opportunity
The CHIPS and Science Act will 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 and Science Act will 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 and Science 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 and Science Act will bring chip manufacturing back home, creating and protecting thousands of good-paying jobs, growing America’s economy, and lowering costs for families.