05.12.21

Peters Provision to Increase American Semiconductor Production Advances in Senate

WASHINGTON, DC – U.S. Senator Gary Peters (MI) today announced that his amendment to increase domestic production of semiconductor chips was passed as part of a larger bill on economic competitiveness, which was advanced in the Commerce, Science and Transportation Committee. The amendment – which Peters authored with U.S. Senator Debbie Stabenow (MI) – would establish a supplemental domestic semiconductor manufacturing incentive program at the Department of Commerce to support the production of mature semiconductor technologies, particularly for industries that have been severely impacted by a recent shortage – including the American auto industry. The amendment advanced as part of the Endless Frontiers Act – which Peters co-sponsored – to strengthen American competitiveness on the global stage, particularly as nations like China invest in research and development.

“The semiconductor shortage crisis is hurting workers and their families in Michigan and across the country – particularly our auto industry. We must act to ensure that we not only shore up our domestic semiconductor manufacturing – but take long-term steps to strengthen our supply chains so that this does not happen again,” said Senator Peters. “I was proud to work with Senator Stabenow in crafting this amendment, and I’m pleased that it advanced today. Semiconductors are going to continue being a critical technology moving forward, and this amendment will reduce our reliance on foreign-sourced semiconductors and address supply chain vulnerabilities. I’ll continue working with the Biden Administration, the auto industry and others to ensure we address this challenge.”

“Michigan families are facing the serious consequences of the semiconductor shortage right now. To fix this crisis and prevent further layoffs, we cannot rely on parts from other countries and need to invest in semiconductor manufacturing here in the U.S. That’s exactly what this amendment does and Senator Peters and I will continue to lead this effort,” said Senator Stabenow.

The global shortage of semiconductor technologies has caused major disruptions for a wide range of industries including manufacturers in Michigan and across the country. In Michigan, the chip shortage has caused layoffs, idled auto plants, and has impacted businesses in other industries due to supply-chain consequences.

 

 

To watch video of Senator Peters’ remarks on the amendment, click here.

Peters’ amendment to the Endless Frontier Act would strengthen the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act – which was signed into law as part of the national defense bill – to ensure that federal incentives for domestic chip production benefit American manufacturing. The amendment:

· Establishes Semiconductor Production Funding Program: Creates a $2 billion supplemental financial assistance program at the Department of Commerce to support the production of mature semiconductor technologies. This new fund will be in addition to the Commerce Department’s existing semiconductor manufacturing incentive programs, which was passed as part of the most recent national defense bill.

· Supports Manufacturers Most Reliant on Mature Semiconductors: Within the $2 billion supplemental assistance program for mature semiconductor technologies, the Peters amendment will ensure that semiconductor projects that support critical manufacturing industries are given priority status, which would include the automotive sector -- as well as other manufacturing industries that the Secretary of Commerce identifies based on their relevance to the national and economic security of the United States.

· Prioritizes Manufacturers Critical to National Security & Economy: The amendment also strengthens already-enacted CHIPS Act incentives for semiconductor manufacturing by adding explicit language that ensures federal funds are used to promote American economic and national security interests, address supply chain gaps, and support a broad range of domestic industries.

To read the full text of the amendment, please click here.

Peters has repeatedly press for action to address the semiconductor shortage crisis. He previously joined a bipartisan, bicameral letter urging the Biden Administration to fund initiatives to restore and increase semiconductor manufacturing in the U.S. from the CHIPS ActPeters has raised this supply chain disruption repeatedly with numerous Biden Administration officials in conversations both before and after President Biden took office.

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