Biden Signs Chips Bill Into Law; Cantwell Looks to Industry Boost

President Joe Biden signed the Chips and Science Act into law Tuesday, calling it a “once in a generation” investment that will help address the supply chain shortage, inflation, national security, jobs and climate change. He spoke for about 20 minutes before signing HR-4346 during a ceremony in the Rose Garden with dozens of congressional, administrative and industry attendees (see 2207280060 and 2208030052)

The new law appropriates $54.2 billion for domestic semiconductor manufacturing and research, advanced wireless communication technologies and other investments. It includes a 25% investment tax credit for investments in semiconductor manufacturing and appropriates $19.4 million in “emergency supplemental funding” to the Supreme Court for addressing security threats, the White House said.

More than a dozen companies are “expected to make announcements in the next few months about expanding the chip supply chain,” said Senate Commerce Committee Chair Maria Cantwell, D-Wash. She estimated the new law will help create 280,000 jobs in the U.S.

Industry attendees included Intel CEO Pat Gelsinger, Samsung Foundry Business President Siyoung Choi, Qualcomm President-Technology Licensing and Global Affairs Alex Rogers, HP CEO Enrique Lores, Lockheed Martin CEO Jim Taiclet, Micron Technology CEO Sanjay Mehrotra, SparkCharge CEO Josh Aviv, Hemlock CEO AB Ghosh and GlobalFoundries CEO Tom Caulfield. Communication Workers of America President Chris Shelton attended.

Qualcomm applauded the bill’s signing: “As one of the highest volume chip designers in the world, Qualcomm works with all leading foundries and benefits from the resulting increased capacity, as well as greater geographic diversity and more resilient supply chains that will help create economic value.”

The new law creates 100,000 “good paying” jobs in the U.S. and ends “our dangerous dependence on foreign manufacturers of critical goods,” said House Commerce Committee Chairman Frank Pallone, D-N.J. The $1.5 billion investment in the Public Wireless Supply Chain Innovation Fund for the deployment of Open Radio Access Network 5G networks -- a key provision from the House Commerce Committee -- helps “bring diversity and innovation to wireless supply chains while also countering the spread of harmful network equipment from companies backed by adversaries like Communist China-backed Huawei,” he said.

Many provisions originated from the House Science Committee that “will renew support for our premier federal science agencies” and “bolster our economic and national security,” said House Science Committee Chair Eddie Bernice Johnson, D-Texas. Some provisions were developed over the course of years with stakeholders, she said. Commerce Secretary Gina Raimondo credited House Speaker Nancy Pelosi, D-Calif.; Senate Majority Leader Chuck Schumer, D-N.Y.; and Senate Minority Leader Mitch McConnell, R-Ky., for “prioritizing” the legislation.

Raimondo highlighted contributions from several other Democratic and Republican members of Congress, including House Foreign Affairs Committee ranking member Michael McCaul, R-Texas; House Appropriations Committee Chair Rosa DeLauro, D-Conn.; and House Appropriations Committee ranking member Kay Granger, R-Texas. The U.S. is “sending a clear signal to the world that we are serious about rebuilding our domestic manufacturing industry and leading the world in science and innovation for decades to come,” she said.

Senate Intelligence Committee Chairman Mark Warner, D-Va., and Sen. John Cornyn, R-Texas, introduced the Creating Helpful Incentives to Produce Semiconductors (Chips) for America Act in June 2020. Warner noted the U.S. makes only 12% of the world’s chips, despite semiconductors being contained in the vast majority of electronics. Sen. Todd Young, R-Ind., highlighted the bill’s “national security imperative,” noting the Chinese Communist Party actively lobbies against the legislation’s passage: “History will show that by enacting this legislation into law, we are confronting the challenges of today and building a more prosperous and secure tomorrow for all Americans.”

The U.S. Chamber of Commerce welcomed the bill signing. “American companies are too reliant on foreign manufacturers and suppliers to secure necessary microchips, leaving us vulnerable and exposed,” said Chief Policy Officer Neil Bradley. “With today’s signing of the CHIPS Act into law, we take the first step to strengthening our economic and national security.”