Senator Kelly Praises Progress on Funding to Boost Domestic Semiconductor Manufacturing and Research

Senate considering legislation that includes $52 billion to fund CHIPS for America Act Programs

Today, Senator Mark Kelly praised progress towards funding the CHIPS for America Act,which will restore American leadership in semiconductor manufacturing. The Senate has begun consideration of The United States Innovation and Competition Act, legislation in which Kelly worked to include $52 billion to fund CHIPS for America Act programs including grant incentives for construction or expansion of semiconductor fabrication plants, research and development programs for semiconductors, and cooperation with allies on semiconductor policy.

“Investments in semiconductor manufacturing and research on American soil is critical to both our economy and national security. I’ve been working with Republicans and Democrats on this and will continue to do so until we get it done because it is important to maintain our competitive edge over China and other adversaries. Arizona is already a leader in semiconductors, and is poised to play a central role in restoring American leadership in the industry while creating the high-paying jobs of the future,” said Senator Kelly.

Further background:

Semiconductors are used in everything from phones and cars, to computers and defense systems. The share of semiconductors and microelectronics manufactured in the United States has fallen in recent decades. While the U.S. represented 37% of global semiconductor manufacturing capacity in 1990, today just 12% of semiconductors are manufactured in the U.S., and many foreign competitors, including China, are investing heavily to dominate the industry. Arizona is home to a growing semi-conductor industry that already includes Intel, which recently announced investment plans and that Kelly visited last week, and will soon include the Taiwan Semiconductor Manufacturing Company, which has announced investment to bring manufacturing to Phoenix.

A global semiconductor shortage has slowed manufacturing and exposed these supply-chain vulnerabilities.

In the 2021 National Defense Authorization Act (NDAA), Congress enacted the CHIPS for America Act to restore semiconductor manufacturing to American soil and advance American leadership in research and development of semiconductor technology. In April, Senators Kelly, Cornyn, Warner, and Cotton led a letter with a bipartisan group of Senate colleagues urging the Biden Administration to prioritize securing funding to implement CHIPS for America Act programs for at least the authorized levels.

This week, the Senate is considering The United States Innovation and Competition Act as part of an effort to maintain our competitive edge over China and other countries in science and technology. The substitute amendment to the bill includes $52 billion in funding for CHIPS for America Act programs, including grant incentives for construction or expansion of semiconductor fabrication plants, research and development programs for semiconductors, and cooperation with allies on semiconductor policy.