Washington, D.C. – Commerce Secretary Gina Raimondo outlined her plan Thursday to establish the United States as the world’s largest producer of semiconductors, spotlighting the importance of manufacturing and factory workers.
Alliance for American Manufacturing President Scott Paul said:
“Implementation of the CHIPS and Science Act is a good first step in rebuilding America’s critical manufacturing base and strengthening our national security — but it can’t be the last word. Decades of offshoring have left the United States shockingly vulnerable to disruptions like the pandemic-induced supply shortages. The U.S. is also losing its innovation edge, as technological competitiveness is impossible without a vibrant domestic manufacturing base. Meanwhile, China has leveraged America’s negligence. It’s time for a robust response.
“The CHIPS Act puts us on the right track. Already hundreds of billions of dollars have been invested in revitalizing the semiconductor industry, stimulating growth that will keep America at the forefront of technological competitiveness at a time of increasing geopolitical tension.
“As Secretary Raimondo noted in her remarks today, the United States is at an inflection point. The CHIPS and Science Act —paired with the Bipartisan Infrastructure Law and Inflation Reduction Act — is a once-in-a-generation opportunity to fuel a manufacturing renaissance. But more investment is needed to drive America forward and proper implementation of these laws is equally crucial. America’s taxpayer dollars should be reinvested into American manufacturers, workers and communities through strong enforcement of Buy America provisions.”
The Commerce Department has begun implementation of the CHIPS and Science Act and will utilize the $50 billion CHIPS for America Fund to develop at least two major semiconductor clusters built within the U.S. by union workers by 2030. These clusters will create networks of factories, research-and-development labs, and suppliers.
President Biden signed the CHIPS and Science Act into law in August 2022, spurring nearly $200 billion in private investment in American semiconductor manufacturing, according to the Semiconductor Industry Association. This has led to 40,000 new jobs in the semiconductor ecosystem.
The Commerce Department will announce further information next week about how companies can apply for funds from the CHIPS and Science Act.
ICYMI: Alliance for American Manufacturing President Scott Paul will testify before the House select committee on China during its first hearing Tuesday at 7 p.m. EST.