Bipartisan Efforts to Boost American Semiconductor Production Gain Momentum in Congress

Strategic Insights -

U.S. Senator and Senate Auto Caucus co-chair Sherrod Brown (D-OH) has welcomed the House of Representatives' passage of the America COMPETES Act of 2022, a critical legislation aimed at investing in American semiconductor production and ensuring the country's competitive edge in the global economy. The bill, which contains Brown's Leveling the Playing Field 2.0 Act, the CHIPS for America Act, and other key provisions, is expected to unlock significant investments in Ohio's manufacturing sector, creating thousands of jobs and driving economic growth.

Key Takeaways:

  • The America COMPETES Act aims to make a once-in-a-generation investment in American science, technology, and innovation, helping the U.S. preserve its competitive edge in the global economy.
  • The bill includes Brown's Leveling the Playing Field 2.0 Act, which will strengthen U.S. trade remedy laws and ensure they remain effective tools to fight back against unfair trade practices and protect American workers.
  • The CHIPS for America Act will provide more than $50 billion to fully implement American semiconductor production, making a major investment in Ohio's manufacturing sector.
  • Intel's $20 billion investment in Ohio, announced last month, is expected to create 10,000 jobs and boost U.S. semiconductor production.
  • Brown has been working to secure solutions for the semiconductor crisis for months, writing to Brian Deese, Director of the National Economic Council in February, urging the administration to support efforts to secure the necessary funding.
  • The America COMPETES Act builds on Brown's 2014 legislation, the Revitalize American Manufacturing and Innovation Act, which created a network of 15 manufacturing innovation hubs around the country.
  • America Makes, the nation's leading public-private partnership for additive manufacturing, was founded in 2012 and has been instrumental in promoting 3D printing technology education and workforce development.

Statistics:

  • Over 75% of chip manufacturing capacity is currently located in Asian countries, primarily Taiwan, South Korea, Japan, and China.
  • The America COMPETES Act aims to boost U.S. semiconductor production with more than $50 billion in investments.
  • Intel's $20 billion investment in Ohio is expected to create 10,000 jobs.
  • The U.S. Innovation and Competition Act and America COMPETES Act both contain provisions from the CHIPS for America Act to support American semiconductor production.
  • President Obama directed the Department of Defense to create America Makes, the nation's first manufacturing institute, in 2012.

Sources:

  • U.S. Senator Sherrod Brown's press statement on the America COMPETES Act.
  • Intel's announcement on its $20 billion investment in Ohio.
  • The America COMPETES Act of 2022.
  • The U.S. Innovation and Competition Act.
  • The CHIPS for America Act.
  • Rep. Terri Sewell's (D-AL) introduction of companion legislation in the House.
  • The Senate's passage of USICA in June.
  • Brown's letter to Congressional leadership, urging swift passage of revised bipartisan legislation to invest in manufacturing and address the global semiconductor shortage.