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July 27, 2022

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Gov. Whitmer Statement on Senate Passage of CHIPS+ Act

Bipartisan legislation will face the chip crisis head-on, lower costs, shore up national security, boost domestic manufacturing, create and protect tens of thousands of good-paying jobs


LANSING, Mich. – Governor Gretchen Whitmer issued the following statement after the United States Senate passed legislation including the Creating Helpful Incentives for the Production of Semiconductors for America (CHIPS) Act.


“The Senate’s bipartisan passage of the CHIPS Act is a win for Michigan’s workers, manufacturers, and consumers.


“This game-changing bill will make once-in-a-generation investments to set up the United States for decades of economic growth by bringing this vital supply chain home, creating and protecting tens of thousands of good-paying jobs, and lowering costs for families.


“I am grateful to Senator Stabenow and Senator Peters for leading on this issue in the Senate and working across the aisle to get it done. When it is signed into law, the CHIPS+ Act will shore up our supply chain and support companies based in Michigan including our auto industry, homegrown chip manufacturer Hemlock Semiconductor, and other high-tech firms including SK Siltron and KLA.


“In the days ahead, I am confident that thanks to the strong support of our Michigan delegation, the House of Representatives will pass this bill, and I urge them to send it to the president’s desk as quickly as possible so we can get the incentives laid out in the legislation out the door, build on Michigan’s economic momentum, and ultimately lower costs for Michiganders. I am proud that we are showing the world that the United States is the place to build the future. Let’s keep moving Michigan forward.”


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.


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+ 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+ Act will bring chip manufacturing back home, creating and protecting thousands of good-paying jobs, growing America’s economy, and lowering costs for families.