Kaine Statement on Signing of Law to Boost Domestic Chips Manufacturing
WASHINGTON, D.C. — Today, U.S. Senator Tim Kaine released the following statement after President Biden signed legislation to incentivize private investment in domestic chips manufacturing and provide a combined $157 billion of support for chips production and science research in America:
“This historic legislation is critical to helping us strengthen our national security, lower costs, create jobs, and outcompete China. I’m glad to have helped pass this bill in the Senate so it could be signed into law today, and look forward to building on this progress with more legislation to improve our economic competitiveness and lower costs for Virginians.”
America currently only produces 12 percent of the global supply of chips, which are required by everything from cars, computers, and phones to televisions, LED lightbulbs, and washing machines. Meanwhile, East Asia—where other governments incentivize their own domestic chip manufacturing that make it significantly cheaper to produce chips than in America—has become the production point for 75 percent of the world’s chips.
COVID-related chip supply strains have hindered American manufacturing output, resulting in decreased supply and higher prices for cars and other goods. Today’s shortages indicate how catastrophic future chip shortages could be for America’s economy, technological competitiveness, and military capabilities.
Today’s legislation aims to create a resurgence in American chips manufacturing to protect America from the threat of future chip shortages by offering private companies a tax credit for investments in domestic chips manufacturing facilities and making $52 billion in funding available for chips researchers and manufacturers so they can make more chips in America.
Kaine has been a consistent advocate for the need to onshore chip production and has emphasized the important role Virginia can play in strengthening chip supply and creating chip manufacturing jobs. Virginia is already home to some of the world’s leading semiconductor manufacturers, which will be able to apply for funding from today’s legislation.
In addition to investments in and incentives for chips manufacturing, the legislation will help support the science research America’s economy needs to be competitive in the 21st century, by including:
- Over $81 billion for the National Science Foundation (NSF) over the next five years, including: $20 billion for the first-of-its-kind NSF program to accelerate domestic development of national and economic-security critical technologies such as artificial intelligence, quantum computing, advanced manufacturing, 6G communications, energy, and material science;
- $13 billion to invest in America’s Science, Technology, Engineering, and Math (STEM) workforce by supporting STEM education through scholarships, fellowships, and traineeships to train workers in critical fields, including through an artificial intelligence scholarship-for-service program, a national network for microelectronics education, and cybersecurity workforce development programs; and
- $11 billion for the Regional Innovation Engines to advance multidisciplinary and collaborative research and development in key technology focus areas at institutions of higher education, nonprofit organizations, civil society organizations, and industry firms in relevant sectors. These hubs will focus on technology development, job creation, and expanding U.S. innovation capacity.