CHIPS And Science Act of 2022 Moves Forward
Randy Wolken, President & CEO
This week the U.S. Senate approved a $280 billion bill supporting the semiconductor industry. It also moved forward in a bipartisan way to expand U.S. industrial policy to counter China’s threat to our national and economic security. The vote reflected a growing concern by both parties that the U.S. lacks a response to China’s threat to our critical industries.
The CHIPS and Science Act of 2022 spends $52.7 billion on direct financial assistance for the construction and expansion of semiconductor manufacturing facilities and other programs. In addition, it adds $24 billion in tax incentives and other provisions. Finally, it dramatically increases federal spending on scientific research so the U.S. can gain and maintain a technological edge. The bill was approved 64-33, with 17 Republicans joining a nearly unanimous Democratic caucus in favor. It now moves to the House for approval and then to the President’s desk for signature.
“In the 1970s and ’80s, our companies could do just fine on their own,” Senate Majority Leader Chuck Schumer (D., N.Y.) said in an interview this week. “But in the 21st century, with countries like China and Germany investing heavily, we could sit back on the sidelines, and who would lose out? American workers, American economic dominance, and our national security.”
This development puts New York State and our Upstate Communities in a solid position to secure significant opportunities in the semiconductor and manufacturing industries. To capitalize on this moment, we will need to support existing and new industries with manufacturing-friendly public policy and help encourage them to invest in us. This has been and continues to be a major focus of MACNY’s efforts.
Likewise, this will put even greater pressure on our region to educate, train, and develop the workforce necessary to staff existing and new manufacturers and businesses. This is also an area of assistance that MACNY excels at. Our nationally recognized apprenticeship approaches and career pathway efforts help member companies be more successful today, and we are investing in them to ensure they are available to fill the growing need. Please let us know how we can help you today and prepare for what you will need in the future.
Together we will tackle the challenges and seize the opportunities that lay ahead. As we wait to see the final approval and rollout of the CHIPS and Science Act of 2022, we stand ready to do what is necessary to help our members and our community thrive.