Whitmer Celebrates Signing of CHIPS and Science Act into Law
Bipartisan law will face chip crisis head-on, lower costs, protect national security, boost manufacturing, create and protect tens of thousands of jobs
LANSING, Mich. – Governor Gretchen Whitmer issued the following statement after President Biden signed the Creating Helpful Incentives for the Production of Semiconductors for America (CHIPS) and Science Act into law.
“I am thrilled that the CHIPS and Science Act has been signed into law. This historic, bipartisan legislation will empower Michigan workers, surge domestic manufacturing, and lower costs for consumers,” said Governor Whitmer. “I am grateful to our congressional delegation for their leadership to get this done. The CHIPS and Science Act brings supply chains home, creates and protects tens of thousands of good-paying jobs, and lowers costs on everything from cars and electronics to household appliances. I signed an executive directive last week preparing Michigan to harness every possible resource from the law, and we will maximize its potential right here in Michigan. The CHIPS and Science Act will build on our economic momentum, and I will work with anyone to show the world that Michigan is the place to build the future. Let’s keep moving forward.”
Michigan’s Leadership to Deliver CHIPS and Science Act
- June 8, 2021: US Senate passes United States Innovation and Competition Act including provisions from Michigan Senators Peters and Stabenow and funding for chip manufacturing.
- August 24, 2021: Governor Whitmer announces chip manufacturer SK Siltron to build a production and R&D facility in Bay City area, creating 150 jobs and bringing supply chain from China to Michigan.
- November 11, 2021: Governor Whitmer leads group of 9 bipartisan governors calling on House to pass CHIPS+.
- February 4, 2022: US House passes the America COMPETES Act, includes funding for CHIPS+.
- February 24, 2022: Governor Whitmer leads group of 21 bipartisan governors calling on House and Senate to come together, reconcile differences, and pass legislation with funding for CHIPS+.
- March 9, 2022: Governor Whitmer represents Democratic governors at bipartisan roundtable discussion on chips at the White House, urges immediate passage of CHIPS+ Act to protect good-paying auto jobs in Michigan.
- March 28, 2022: US Senate, including both Michigan Senators, amends and passes America COMPETES Act.
- July 22, 2022: Lieutenant Governor Gilchrist hosts Speaker Pelosi, and Representatives Dingell, Kildee, Stevens, and Levin for a roundtable discussion on urgency of CHIPS+ Act for Michigan.
- July 27, 2022: US Senate passes CHIPS and Science Act
- July 28, 2022: US House passes CHIPS and Science Act, sending bill to President Biden’s desk.
- August 2, 2022: Governor Whitmer signs executive directive preparing Michigan to harness every possible resource from the law
CHIPS and Science Act Opportunity
The CHIPS and Science Act funds $52 billion in incentives to boost domestic semiconductor production and research, $2 billion of which is 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 and Science Act provides 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. The CHIPS and Science Act paves 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. The CHIPS and Science Act will bring chip manufacturing back home, create and protect thousands of good-paying jobs, grow America’s economy, and lower costs for families.