Investment will also ease supply chain disruptions, support American jobs, and promote economic development in Ohio
WASHINGTON, DC – Today, Congressman Dave Joyce (OH-14) voted for the CHIPS and Science Act to ensure America’s long-term national security and restore its domestic semiconductor manufacturing capabilities. This bipartisan legislation increases federal incentives to bolster advanced chip manufacturing in America, enable cutting-edge research and development, secure the supply chain, and create American jobs.
According to the non-partisan Congressional Research Service, nearly four-fifths of global chip manufacturing capacity was in Asia as of 2019. In past years, while the U.S. opted not to make any significant federal investment in domestic chip manufacturing, China devoted roughly $150 billion to build their domestic capacity. America now only makes about 12% of the world’s chips versus the 40% we used to produce in 1990. Currently, 90% of advanced chips are manufactured in Taiwan, which is under constant threat of Chinese invasion.
“China secured a superior, strategic position in the global supply chain while America was asleep at the wheel,” said Joyce. “COVID-19 proved just how dangerous that mistake was. Unfortunately, we woke up a little too late – we have developed a frightening reliance on their brutal and anti-democratic regime. The greatest national security challenge we face today is China’s chokehold on our defense industrial base. Congress cannot twiddle its thumbs while the Chinese Communist Party spends billions of dollars to become the leader in the production of advanced semiconductors.
“Semiconductors don’t just power smartphones and cars,” Joyce continued. “They are the lifeline of everything from medical equipment to our military’s elite fighter jets and most advanced weapons systems. If we want to secure our democracy for generations to come, we must be both energy and technologically independent from our adversaries – the CHIPS and Science Act will help us achieve just that. I voted yes today because I refuse to allow this great nation to be at the mercy of the Chinese Communist Party when the next global emergency hits.”
Specifically, the bill authorizes nearly $60 billion over five years for domestic semiconductor manufacturing and research, support regional technology hubs, and creates a 25% investment tax credit for investments in semiconductor manufacturing through 2026. Importantly, the bill also provides $200 million for the CHIPS for America Workforce and Education fund to kick start the development of the domestic semiconductor workforce, which currently faces near-term labor shortages as 90,000 employees are needed by 2025. Funding through the regular appropriations process will be needed to support these authorizations.
In January, Intel announced that it is investing $20 billion to build two semiconductor factories in Ohio that will employ 3,000 workers. Intel has indicated that the company’s investment in the Buckeye State could reach $100 billion if the CHIPS and Science Act passes Congress and is signed into law.