President Biden has signed into law the CHIPS and Science Act of 2022, legislation that promises to bolster manufacturers’ competitiveness, according to the NAM.
Supercharging manufacturing: “The CHIPS and Science Act [is] a once-in-a-generation investment in America itself, a law that people in America can be proud of,” Biden said today. It “supercharges our efforts to make semiconductors here in America. … [We] must lead the world in the production of these chips. This law will do exactly that.”
- NAM President and CEO Jay Timmons was on hand for the signing, along with many other business leaders.
- “Manufacturers thank congressional leaders from both parties who got this bill across the finish line and President Biden and Secretary Raimondo for their leadership,” Timmons said following the signing.
The background: The bipartisan measure, previously called the CHIPS-Plus Act, was passed by the U.S. Senate and House of Representatives in July. It provides more than $52 billion in funding to semiconductor manufacturing and scientific research.
- “Every manufacturer in America will benefit from [this legislation], whether they make chips, make products that require chips or are part of a supply chain disrupted by the semiconductor shortage,” Timmons said.
Other components: In addition to provisions for the domestic manufacturing of semiconductor chips, the CHIPS and Science Act also:
- Supports new research on critical minerals;
- Increases funding for the Department of Energy’s Office of Science, the National Science Foundation and the National Institute of Standards and Technology;
- Sets new policies for sending humans back to the moon and ultimately to Mars; and
- Expands rural STEM education.
Still work to do: Though the legislation will be a boon to manufacturers, it omits solutions to some critical challenges facing the U.S., Timmons said. These include:
- China competition legislation;
- Anti-counterfeiting measures;
- Critical trade provisions; and
- Further investments in supply chain resilience and workforce development.
Why it’s crucial: “Our economic future and America’s leadership in the world depend on a competitive manufacturing industry,” Timmons continued.
- “Congress has acted wisely with the CHIPS and Science Act. Now we need Congress to continue standing with manufacturers and focus on policies that will help us compete with China and other countries, not make it more expensive to make things in America.”