This past Wednesday, U.S. Commerce Secretary Gina Raimondo urged Congress to pass the CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Act in order to safeguard national security and the future of the economy. The bill aims to incentivize investment in U.S. semiconductor manufacturing, research and development and supply chain security, providing income tax credit for chip equipment or manufacturing facility investment through 2026.
While the CHIPS for America Act was passed in January of 2021, Congress has yet to agree on a bill that would appropriate resources for its various programs, despite bipartisan support for expanding domestic chip manufacturing capacity.
“It is a huge national security issue and we need to move to making chips in America, not friend-shoring,” Raimondo said at the World Economic Forum in Davos, Switzerland, on Wednesday. Treasury Secretary Janet Yellen outlined friend-shoring during a speech in April as working with countries that possess what she called a “strong adherence to a set of norms and values about how to operate in the global economy and how to run the global economic system.”
Raimondo and President Joe Biden visited a Samsung facility in South Korea last week, the largest in the world, and the commerce secretary reiterated calls for a similar “amazing manufacturing operation” to be built in the U.S. “If Congress doesn’t pass the CHIPS Act and pass it quickly, we’re going to lose out on that. Intel, Micron, Samsung – they’re growing, they’re going to build future facilities,” she said.
“If Congress doesn’t move quickly, they’re not going to build them in America. They’re going to continue to build them in Asia and in Europe, and we risk losing out on that.”