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Gov. Whitmer calls on Congress to fund CHIPS Act

Congress Debt
Posted at 4:08 PM, Feb 25, 2022
and last updated 2022-02-25 16:08:24-05

LANSING, Mich. — Gov. Gretchen Whitmer and 21 governors across the country signed a letter urging Congress to pass full funding for the Creating Helpful Incentives for the Production of Semiconductors for America Act (CHIPS Act.)

The $52 billion incentives provided within the act would boost domestic semiconductor chip production and support domestic businesses that rely on the chips for their own manufacturing.

Mid-Michigan experienced the semiconductor chip shortage firsthand over the last year, as production at local car manufacturing plants slowed and even temporarily stopped. The General Motors Lansing Delta Township Plant halted production over the summer due to the chip shortage.

"If we’re going to protect working families and maintain America’s competitive edge, Congressional leaders must come together to get this done," said Whitmer. "I am grateful for the Michigan Congressional delegation’s work to include the CHIPS Act in both the House and Senate competitiveness packages. Passage of an investment tax credit for semiconductor manufacturing and design, as provided in the FABS Act, would be another significant tool in our toolboxes to attract chip-focused investment. I hope that both chambers can now come together to send a unified package that fully funds these important incentives to the president’s desk as fast as possible so we can address this crisis and further Michigan’s economic momentum.”

Semiconductor chips are used in a wide variety of products like cell phones, cars and medical equipment.

According to the governor's office, the shortage of chips has had an impact on more than 575,000 auto-related jobs in the U.S and 2.2 million vehicles.

“The chip shortage has hit working families and businesses in Michigan and many other states hard. Thousands of jobs up and down the auto supply chain and across multiple industries are at risk, and the solution is clear. Fund the CHIPS Act now," Whitmer said.