Menendez Joins NJ Business Leaders in Urging Swift Passage of Bipartisan CHIPS Act
CHIPS Act aims to improve supply chain issues which are key to economic recovery and resiliency
NEWARK N.J. – U.S. Senator Bob Menendez (D-N.J.) joined today with representatives of the New Jersey Manufacturing Extension Program, the New Jersey Chamber of Commerce, and other business leaders to discuss the CHIPS Act and urge its passage this week.
The legislation would provide $52 billion in subsidies to incentivize U.S. computer chip manufacturing and semiconductor production and decrease dependence on foreign manufacturers. Expanding domestic chip production would help ease supply chain disruptions that have impacted the economic recovery from the COVID-19 pandemic as a chip shortage has affected many industries including automobile manufacturers, technology and cell phone companies, home appliance producers, and more.
The CHIPS Act also creates a 25 percent investment tax credit for investments in semiconductor manufacturing and includes incentives for the manufacturing of semiconductors, as well as for the manufacturing of the specialized tooling equipment required in the semiconductor manufacturing process.
“Through the CHIPS Act, we will address vulnerabilities in our supply chains, boost our domestic manufacturing capacity, and better prepare our nation’s economy for the 21st century,” said Sen. Menendez. “Making our economy stronger and more resilient here at home — especially when it comes to the emergent technologies that are increasingly defining the twenty-first century — is crucial for our security and our prosperity.”
“Supply chain disruptions caused by the COVID-19 pandemic have severely impacted the production of semiconductors and microchips globally. The effects of this shortage have rippled through various industries in the United States, including automobile and home appliance manufacturing,” said Sen. Booker. “Through critical federal investment, the bipartisan CHIPS Act will ease the current bottleneck by expanding semiconductor production while also boosting American competitiveness and our economy.”
“I am pleased that the Senate is making progress on a final version of the CHIPS Act to help American manufacturers compete in the global semiconductor marketplace,” said Rep. Donald M. Payne, Jr. “I helped pass a bill in the U.S. House of Representatives called the America Creating Opportunities for Manufacturing Pre-Eminence in Technology and Economic Strength (America COMPETES) Act in February to provide $52 billion to spur private-sector investment in the development and manufacture of microchips to aid the country’s semiconductor industry. These chips are critical to the creation of advanced technology and how we coordinate products during a supply chain crisis, like the one we are experiencing right now. I applaud the work Senator Menendez has done to create a new National Supply Chain Database to avoid such supply chain catastrophes. I know the CHIPS Act will continue to keep American manufacturing strong and help avoid shipping and other freight transportation issues in the future.”
“The policies and funding included in the CHIPS Act will help our nation address critical gaps in our supply chain,” said Rep. Albio Sires. “By incentivizing domestic chip production, we can prevent future disruptions to economic recovery and growth.”
Included in the CHIPS Act is a provision championed by Sen. Menendez in partnership with the NJMEP for the creation of a National Supply Chain Database. The database would help prevent future supply chain disruptions by offering manufacturers key information as they make decisions on how to retool in critical areas to meet the demand for products, such as defense supplies, food, and medical devices. The bill sets aside $131 million to help fund the creation of the National Supply Chain Database.
“The world view on manufacturing and supply chain has changed drastically over the past several years, and certainly has applied more pressure on U.S. manufacturing to step up and compete. The Federal Government’s Manufacturing Extension Partnership has certainly done its part, and NJMEP has helped lead the way,” said John Kennedy, Chief Executive Officer of the New Jersey Manufacturing Extension Program. “However, without further support from Senator Bob Menendez and his foresight and perseverance to create and maintain a National Supply Chain Database Tool, we’d be severely handicapped by our lack of depth in our knowledge of ‘what we produce and where do we do so’. The Senator would not let that happen and has been tireless in his efforts. The ‘CHIPS for America Act’ and the National Supply Chain Database that will be voted on in the Senate in the upcoming week will be a game-changer on multiple levels.”
CLICK TO VIEW/DOWNLOAD HI-RES PHOTOS
According to data from the U.S. Census Bureau, in 2020 there were 354 establishments in New Jersey in the semiconductor space and classified as Computer and Electronic Product Manufacturers (NAICS Code 334 includes the manufacturing of computers, computer peripherals, communication equipment, and other electronics as well as companies which manufacture components for these products). Census data available from 2017 shows total retail sales from this sector in New Jersey were $7.6 billion.
“The ‘CHIPS Act’ allows American semiconductor manufacturers to maintain leadership in technology while reducing dependence and vulnerability on foreign suppliers. The 21st century will be driven by innovation and technology in advanced semiconductor production and advanced assembly technologies,” said Bill Foley, President, American Microsemiconductor, Inc. “The ‘CHIPS Act’ can reduce American dependence on materials and equipment from foreign companies. From these capabilities, we will be able to shore up production gaps that have occurred over the years. These gaps have led to rising production and material costs with delays in deliveries. We have all seen it and no one has been immune to these price changes.”
In addition to the CHIPS Act, the Senate is also expected to vote in the near future on another bill that will have positive impacts on supply chains and would authorize construction of the NY & NJ Harbor Deepening Channel Improvements. The Channel Improvement project calls for deepening the pathways to Elizabeth – Port Authority Marine Terminal and Port Jersey – Port Authority Marine Terminal by 5 feet to a maintained depth of 55 feet allowing for the safe and efficient passage of larger vessels and increased volume of goods. The project is also expected to create approximately 88,000 full-time jobs.
“The Port Authority has long been committed to a seaport that is efficient and can move the record cargo volumes we continue to see, including several capacity-building investments made by the agency and its container terminal operators in recent years,” said Beth Rooney, Port Director, Port Authority of NY and NJ. “At a time of persistent global supply chain challenges, we welcome efforts by our congressional delegation to strengthen domestic manufacturing that would in turn help relieve supply chain disruptions and increase our nation’s economic competitiveness.”
“The shortage of semiconductors represents a significant challenge to thousands of businesses across New Jersey,” said Ray Zardetto, Senior Vice President of Communications for the New Jersey Chamber of Commerce. “But this shortage also presents an opportunity for our state to again become a leader in this vital industry. New Jersey has a long and rich history of innovation and it has always been characterized by visionary leadership and smart investments. The CHIPS legislation embodies both. The New Jersey Chamber of Commerce thanks Senator Menendez for his leadership on this initiative and urges Congress to pass the legislation as quickly as possible.”
“NJBIA supports passage of the CHIPS Act as it will incentivize growth of domestic computer chip manufacturing,” said NJBIA President and CEO Michele Siekerka. “The increased production of these chips that power and bring innovation to all modern electronics and automobiles, will help ease supply chain challenges and reduce reliance on foreign manufacturers. Here in New Jersey, where we have a storied and historic role in manufacturing, we are primed to play a key role in this much-needed growth, innovation and expansion.”
Example: Yes, I would like to receive emails from Insider NJ. (You can unsubscribe anytime)