Senate Unanimously Passes Senator Peters’ Bipartisan Legislation to Strengthen Domestic Semiconductor Manufacturing
WASHINGTON, DC – The U.S. Senate has unanimously passed U.S. Senator Gary Peters’ (MI) bipartisan legislation to strengthen federal efforts to expand domestic manufacturing of semiconductor chips. Peters’ Securing Semiconductor Supply Chains Act – which he reintroduced with U.S. Senators Rick Scott (R-FL), Marsha Blackburn (R-TN), and Jon Tester (D-MT) – would direct the U.S. Department of Commerce’s SelectUSA program, in collaboration with other federal agencies and state economic development organizations, to develop strategies that would attract investment in U.S. semiconductor manufacturers and supply chains. Peters’ bill – which was approved by the Senate Commerce, Science, and Transportation Committee in May – would help address the ongoing global shortage of semiconductor technologies that has disrupted a range of industries in recent years including manufacturers and automakers in Michigan. Companion legislation led by Representatives Greg Pence (R-IN) and Anna Eshoo (D-CA) was passed by the U.S. House of Representatives in July.
“In order to remain a global economic powerhouse in the 21st century, we must continue to build on the investments we made in the CHIPS and Science Act to boost U.S. production of semiconductor chips, which we know will dictate the future of technology and innovation,” said Senator Peters, a member of the Senate Commerce, Science, and Transportation Committee.“My bipartisan bill would do just that by strengthening our efforts to attract investment in American semiconductor manufacturers as well as their suppliers, reducing our dependence on foreign producers for these critical technologies and creating good-paying jobs here at home.”
“We are grateful to Senator Peters and his colleagues for serving as catalysts in a bipartisan commitment to bet on American workers. Michigan has worked tirelessly over the last two years to enhance our competitiveness in the semiconductor industry: We signed an MOU to establish a global semiconductor center of excellence (M-STAR); provided the largest investment in state history to local higher education institutions to promote semiconductor jobs and training; and secured capital investments by semiconductor companies or suppliers to expand,” said Quentin Messer, Jr., CEO of the Michigan Economic Development Corporation. “We look forward to continued partnership with federal officials to deliver more employment and entrepreneurial opportunities for Michiganders in this vital sector.”
“Thank you to Senator Peters for his leadership in passing this legislation that will grow domestic semiconductor manufacturing and strengthen our supply chains,” said Governor Matt Blunt, President of the American Automotive Policy Council. “This legislation is critical to auto manufacturers, and promotes economic growth in the U.S. auto sector.”
The SelectUSA program was established by President Obama in 2011 to improve federal efforts that attract job-creating business investments in the United States, and that support U.S. firms. Peters put forward this bipartisan bill after the Biden Administration later issued a report emphasizing that the SelectUSA program could be further leveraged to strengthen private sector investments across the semiconductor manufacturing supply chain, in particular.
The Securing Semiconductor Supply Chains Act would direct the SelectUSA program to engage with state-level economic development organizations about how they are attracting foreign direct investment to onshore activities related to semiconductor manufacturing, and identify what resource gaps or other challenges they face in achieving that goal. SelectUSA would then be required to develop strategies to increase investments in semiconductor manufacturing.
Peters has worked to address the semiconductor shortage crisis that has stymied automotive innovation in recent years and has impacted consumers, workers, and industries across the country – including the Michigan auto industry. Peters secured multiple provisions in the CHIPS and Science Act that was signed into law to bolster U.S. semiconductor production, including a provision he championed with U.S. Senator Debbie Stabenow (MI) to create a $2 billion supplemental incentive fund to support the domestic production of mature semiconductor technologies and ensure that projects supporting critical manufacturing industries are given priority status, which would include the automotive sector. This is in addition to $50 billion already in the bill to incentivize the production of semiconductors of all kinds in the U.S. – for a total of $52 billion.
The CHIPS and Science Act also included Peters’ bipartisan Investing in Domestic Semiconductor Manufacturing Act, which will ensure federal incentives to boost domestic semiconductor manufacturing include U.S. suppliers that produce the materials and manufacturing equipment that enable semiconductor manufacturing – bolstering semiconductors supply chains and Michigan manufacturers. The CHIPS and Science Act also authorized increased funding for the Manufacturing Extension Partnership (MEP) program, which has been a priority for Peters. In the government funding bill signed into law last year, Peters secured an additional $188 million for MEPs like the Michigan Manufacturing Technology Center – which provide technical assistance to small and medium-sized manufacturers on business operations, advanced technologies, workforce and skills development, cybersecurity and more. Earlier this year, Peters announced the Michigan Manufacturing Technology Center will receive $400,000 in federal funding made possible by the CHIPS and Science Act to help manufacturers in Michigan improve the strength of their supply chains.
Peters previously convened a field hearing in Detroit to examine how Congress can help bolster U.S. innovation for electric and autonomous vehicles by increasing domestic production of semiconductor chips and other technologies, while also delivering economic, environmental, and safety benefits for the American people. Peters has additionally raised the issue of supply chain disruptions seen in recent years with numerous Biden Administration officials in conversations both before and after President Biden took office – including during a roundtable discussion with Commerce Secretary Gina Raimondo in Michigan.
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