Trade Groups Laud CHIPS, Some Say to Get Trade Items Done
Trade groups that represent semiconductor manufacturers and customers lauded the Senate's passage of incentives for domestic manufacturing, while unions and a union-funded advocacy group both praised the bill and said trade provisions that were not included still need to pass.
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Autos Drive America CEO Jennifer Safavian said, “International automakers and the U.S. auto industry at large are encouraged by this bipartisan compromise and action on the CHIPS and Science Bill. Coupled with supply chain disruptions and economic volatility, the shortage of semiconductor chips has stunted American manufacturing and economic growth, making the U.S. less competitive on the world stage. “The essential funding this legislation provides will strengthen the U.S. supply chain and make our economy more resilient. It will also allow international automakers to continue increasing U.S. auto production to meet consumer demands and invest in U.S. operations and the American workforce."
Auto Innovators CEO John Bozzella said, “By now, we’re all aware of how the pandemic shattered global supply chains and accelerated a worldwide shortage of semiconductors that continues today. You can draw a straight line from that original disruption in 2020 to the still-tight inventories and multiyear drop in auto production and sales in the United States.
“The CHIPS Act is about looking ahead and prepping our key supply chains for whatever comes next. That starts with a larger supply of American-made chips. Considering the computing power of today’s increasingly digital and connected vehicles, this bipartisan investment in domestic semiconductor manufacturing is a smart investment in the future."
The Semiconductor Industry Association said, "We greatly appreciate the bill’s Senate champions for advancing it, commend today’s strong bipartisan vote, and urge the House of Representatives to swiftly follow suit and send the CHIPS Act to President Biden’s desk to be signed into law. The stakes are high, and the time to act is now.”
SIA said the incentives and tax breaks will add up to $79 billion over 10 years, and that will spur hundreds of billions of dollars of chip company investments in the U.S., and they said it could halt the decline in U.S. market share for chip manufacturing.
AFL-CIO President Liz Shuler said, "Today’s passage of the bipartisan CHIPS Act in the Senate is a critical step toward rectifying years of underinvestment in our nation’s manufacturing and research and development capabilities."
She added, "We will continue to advocate for many of the important trade-related provisions that were not included in this version of the bill and would have done more to protect working people. Provisions such as the Trade Adjustment Assistance (TAA) Program -- which expired in July -- would have given workers who have lost their jobs to offshoring the opportunity to gain skills suited for newly built semiconductor facilities. Reinforcing U.S. labor laws and deterring China’s harmful trade practices are top priorities for our movement, and we won’t stop fighting until these necessary measures and reforms are in place."
Alliance for American Manufacturing President Scott Paul said, "Semiconductors were invented in the United States, and they should be made here, too.
"... This must be the first step rather than the last word. Other key industries also face many of the same challenges as the semiconductor industry, and are equally as important. The United States needs to do far more to bring critical production back to our shores and rebuild our industrial base.
"And I'll caution that all of these investments will be for naught if the United States doesn't also act to counter China's predatory trade practices. American workers and manufacturers need 21st century trade tools to take on the 21st tactics deployed by the Chinese Communist Party and other bad actors.
"Legislation like the Leveling the Playing Field Act 2.0 is a good place to start. That measure has bipartisan support, and already has been passed by the House. The Senate must find a path to passage as soon as possible. If Congress fails to follow up strategic investments with enhanced trade enforcement measures, I fear all of the money we are investing today will leak away tomorrow without making an impact."