Today, Congresswoman Haley Stevens (D-MI) and Congressman Colin Allred (D-TX) led a letter to Speaker Nancy Pelosi alongside Freshman and Sophomore House members whose districts are being seriously impacted by the semiconductor chip shortage. The Members are urging the Speaker to prioritize passage of the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Actfunding as soon as possible and to enact a semiconductor investment tax credit before the end of 2021.
“The automotive and manufacturing sectors have been disproportionately affected by the semiconductor chip crisis,” said Congresswoman Stevens. “Thousands of my constituents work in these industries and their families are seeing the impacts first-hand. Detroit puts America on wheels and this summer multiple automotive plants were forced to shut down because they did not have the chips they needed to complete their work. Passage of the CHIPS Act funding is urgently needed to strengthen our domestic semiconductor supply chain and protect the livelihoods of millions of American workers and their families.”
“The semiconductor and chips shortage has shone a bright light on how important this supply chain is, and Congress must act to address this crisis,” said Congressman Allred. “In Texas and across America, dozens of industries and millions of jobs are at stake. There is bipartisan legislation that passed the Senate to strengthen the supply chain with American-made semiconductors and I am proud to lead my colleagues in urging Congressional leaders to move forward on this important legislation.”
Full letter is below.
The Honorable Nancy Pelosi
Speaker of the House
H-222, US Capitol
Washington, D.C. 20515
Dear Speaker Pelosi:
We write to urge that you work out a path for the U.S. House of Representatives to pass the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act funding as soon as possible and to enact a semiconductor investment tax credit before the end of 2021. Swift House passage of the full $52 billion that passed the Senate to fund the CHIPS Act in June is a critical step to strengthening our domestic semiconductor supply chains. Likewise, passage of an investment tax credit, as provided in the Facilitating American-Built Semiconductors (FABS) Act, would also help stabilize the semiconductor supply chain. Both will help build and modernize semiconductor manufacturing facilities in America to alleviate the current chip shortage that is adversely impacting a range of U.S. industries and millions of workers.
The CHIPS Act enjoys broad bipartisan support as its authorization passed overwhelmingly in 2020 as part of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA). The funding was appropriated as part of the Senate’s United States Innovation and Competition Act (USICA) that passed earlier this year by a vote of 68-32. Some changes in the authorization language in the USICA were provided by the Senate this year and $2 billion was added to incentivize production of “mature technology node” chips for sectors like motor vehicles. We strongly support the overall $52 billion in funding and the mature node-specific $2 billion funding levels, as well as the overall authorization language.
Shortages of chips are getting worse across our nation’s supply in the third quarter of 2021. To cite just one example of the damage resulting from this shortage, the Washington Post recently reported the global auto industry will produce 4 million fewer vehicles this year and will lose $110 billion in sales due to the semiconductor shortage. Many other industries reliant on semiconductors – including information and communications technology, aerospace, renewable energy technology, medical devices, manufacturing, and others – are facing similar challenges.
Small manufacturers and businesses, regardless of sector, are facing particularly adverse impacts from the current semiconductor shortages, which causes erratic stops and starts of production. Bottom line short falls are often greater for smaller entities. Often these plants and businesses are leading sources of job and economic growth in communities across the country.
Semiconductors play an increasingly important role in American innovation, job creation, national security, and our defense industrial base. However, U.S. production of semiconductors has plummeted from 40 percent in 1990 to 12 percent of the global supply today. (SIA) Key allies and competitors alike are investing billions to gain or retain an edge in wafer and chip production, and we fear that our country’s competitive advantage and leadership in chip design will be lost without additional manufacturing capacity and know-how. To be competitive over the long-term and to strengthen the resiliency of America’s critical supply chains, our country needs to help enhance research and development efforts by both government and industry for next generation technology, while also providing incentives for the construction of new semiconductor fabs. Congress has an opportunity to play a constructive role in addressing this issue over the medium-and long-term by enacting legislation to incentivize semiconductor manufacturing in the U.S.
The U.S. economy as a whole – and important sectors of the economy in each of our districts – depend on our nation having a resilient supply of semiconductors. Now is the time to act on this national priority. We stand ready to work with you to pass this important legislation.
Sincerely,
Haley Stevens
Colin Allred
Jahana Hayes
Greg Stanton
Susan Wild
Lori Trahan
Sharice L. Davids
Elissa Slotkin
Ann Kirkpatrick
Andy Levin
Nikema Williams
Lucy McBath
Cindy Axne
Teresa Leger Fernandez
Richie Torres
Antonio Delgado
Kim Schrier
Jennifer Wexton
Steven Horsford
Mondaire Jones
Chris Pappas
Deborah K Ross
Dean Phillips
Marilyn Strickland
Veronica Escobar
Kaialiʻi Kahele
Jahana Hayes
Frank Mrvan
Original source can be found here.
