Bipartisan Governors Urge CHIPS Funding

Wednesday, Nov 10, 2021, 1:00pm

by David Isaacs, Vice President, Government Affairs

In another sign of widespread support for funding the CHIPS for America Act, a bipartisan group of governors wrote a letter to congressional leaders urging action for funding the manufacturing incentives and research investments comprising the CHIPS Act that are needed to strengthen the U.S. semiconductor industry. In doing so, the governors join national security leaders, industry and labor organizations from across the economy, and bipartisan members of Congress in calling for prompt action in support of CHIPS.

The letter, signed by the governors of Alabama, California, Illinois, Kansas, Kentucky, Michigan, North Carolina, Pennsylvania, and Wisconsin, emphasizes the economic and national security need for CHIPS funding. The governors highlight the impact of the global chip shortage on the auto industry and other sectors and how CHIPS funding will help address this need. The governors add the funding would “create and protect hundreds of thousands of jobs, grow our economy, and strengthen our national security by creating a resilient domestic semiconductor supply chain for our manufacturers and national defense industrial base.” Separately, the governor of Indiana articulated in an opinion piece in September many of the same points in expressing strong support CHIPS funding.

Funding for the CHIPS Act was approved by the Senate and is awaiting action in the House. A wide range of House members from both parties – including the Problem Solvers Caucus, freshmen and sophomore members, and members with a significant automotive presence in their districts, and others – support CHIPS funding.

But time is of the essence. Our global competitors are actively investing to build their semiconductor industry and challenge U.S. leadership. SIA urges Congress to pass funding of the CHIPS Act this year.