VIDEO: Peters Pushes Commerce Secretary to Ensure the CHIPS Act Continues to Invest in Michigan’s Economy and the Future of the Auto Industry
WASHINGTON, DC – During a Senate Commerce Committee hearing, U.S. Senator Gary Peters (MI) emphasized the importance of investing in Michigan’s economy and the future of the U.S. auto industry through the CHIPS and Science Act, which Peters helped author and enact. Peters urged U.S. Secretary of Commerce Gina Raimondo to ensure that funding from the law is committed to domestic manufacturing of mature semiconductor chips, which are used in automobiles, as well as other semiconductor related components. Reducing our reliance on foreign manufacturers and boosting domestic production of these components will strengthen our global economic competitiveness and our national security.
“One of the primary goals of the CHIPS and Science Act was to address a crisis in the automotive supply chain that was preventing consumers from being able to purchase vehicles and resulting in furloughs of auto workers due to mature chip shortages,” said Senator Peters. “Your department has pledged to spend $10 billion in CHIPS funding to fix that…. but in addition to making more mature chips here, we must also use the CHIPS and Science Act to invest in the future of the automotive industry – and that means research and development.”
“Michigan stakeholders have already mobilized to meet that challenge – and one example is the STAR initiative to establish a semiconductor center of excellence in Michigan. Led by the internationally renowned research center, IMEC, semiconductor equipment manufacturer KLA, the University of Michigan and Washtenaw Community College, the STAR initiative will focus on advancing microelectronics research for vehicle electrification and autonomous automotive solutions. These innovative solutions will help cement the United States leadership not only in the future of semiconductors, but also in the future of the automotive industry,” he continued.
In response, Secretary Raimondo committed to working with Senator Peters to ensure the CHIPS and Science Act continues to invest in research and development and job training, including in the auto industry.
Peters also secured a commitment from Secretary Raimondo to strengthen semiconductor supply chains by prioritizing “advanced packaging” of chips, which is the process by which semiconductor chips are prepared to be integrated into technology like satellites, jet fighters, or automobiles. Calumet Electronics in Calumet, Michigan, which manufactures printed circuit boards (PCBs) and “organic substrates” which carry and connect semiconductor chips, is a national leader in this process, especially for more advanced defense industry applications.
“Advanced packaging, which is a significant part of the chip supply chain… needs significant focus as part of our onshoring efforts,” Senator Peters said. “Calumet Electronics in Calumet, Michigan – with the help of incredible engineers from the Michigan Technological University up in Houghton – is doing incredible work on advanced packaging, particularly by making very advanced printed circuit boards for defense applications, and they're expanding their capacity.”
In response, Secretary Raimondo agreed that the lack of domestic advanced packaging is a national security issue that could undercut the success of the CHIPS and Science Act. She committed to developing a strategy and releasing it later this year to bring more opportunities to manufacture circuit boards and substrates vital to an innovative advanced packaging ecosystem in the United States.
To watch video of Senator Peters’ questioning, click here or on the image below.
Increasing investments in Michigan’s economy and American manufacturing has been one of Peters’ top priorities in the Senate. The CHIPS and Science Act included Peters’ bipartisan Investing in Domestic Semiconductor Manufacturing Act, which would ensure that all parts of the U.S. semiconductor supply chain are eligible for incentives included in the law. It also includes a provision Senator Peters authored establishing at least $2 billion in funding for domestic production of mature chips, which are used in automotive manufacturing. The CHIPS and Science Act also authorized increased funding for the Manufacturing Extension Partnership (MEP) program and in the most recent government funding bill signed into law, Peters secured an additional $188 million for MEPs like Michigan’s Manufacturing Technology Center, which supports small and medium-sized manufacturers across the state.
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