Press Releases

WASHINGTON, DC – Today, Congresswoman Lori Trahan (MA-03), a member of the House Energy and Commerce Committee, voted to send the CHIPS and Science Act to President Joe Biden’s desk to be signed into law. The bipartisan legislation will reduce inflation, create good-paying domestic jobs, and strengthen national security by bolstering the semiconductor chip industry.

“The CHIPS and Science Act is critical in our fight to lower out-of-pocket costs for working families and increase our nation’s ability to compete and win on the global stage. Bringing critical semiconductor chip manufacturing back to the United States will create good-paying jobs here in Massachusetts and across our nation, and it will reduce our dependence on foreign supply chains that have driven up prices in recent months,” said Congresswoman Trahan. “This legislation also boosts the tremendous research and development happening at national laboratories and universities like UMass Lowell. Together, these investments will combat inflation, strengthen our economy, and boost our national security, and I look forward to seeing President Biden sign the legislation into law.”

Semiconductor chips power everything from cars to TVs and smartphones to lifesaving medical devices. Yet just 12 percent of semiconductor chips are currently manufactured in the United States, down from 37 percent in the 1990s. This decrease has led to a dependence on foreign chip supplies that has exacerbated inflation on products that families across the nation depend on. The Federal Reserve Bank of St. Louis estimates that nearly 40 percent of all manufacturing output in the United States has been affected by the recent chip shortage, causing a slow or even halt in production in many cases that, in turn, has driven up prices.

The bipartisan CHIPS and Science Act will reverse these dangerous trends, reasserting America’s economic independence and scientific dominance.  Specifically, the legislation:

• Lowers costs for American consumers: Makes more critical semiconductor components in America, helping end the shortage of chips that have driven up the price of everything from cars to consumer goods.
• Creates 100,000 new good-paying jobs: Creates strong Davis-Bacon jobs building and staffing hi-tech manufacturing facilities here in America.
• Ends America’s dangerous dependence on foreign manufacturers: Brings critical semiconductor manufacturing back to America instead of overseas where it can be threatened by foreign adversaries.
• Turbocharges American Research & Development: Powers America’s preeminence in both basic research and next-generation technologies and ensures that the technologies of the future are made here in America.
• Diversifies and expands the innovation workforce: Broadens the pool of brainpower and talent so that the United States is embracing the full potential from every community, helping to diversify our STEM workforce and advancing regional technology hubs to ensure communities across the country can help in American research and development.

The bipartisan package also restricts the use of these federal investments to pad corporate profits or benefit foreign adversaries. Provisions include:

• A prohibition on companies using chips funding for stock buybacks or dividend payments.
• Barring funding recipients from expanding semiconductor manufacturing in countries of concern.
• Requiring strong oversight and tight Congressional control over the use of federal funds.

The CHIPS and Science Act was passed by the Senate earlier this week. Following today’s vote, it goes to President Biden’s desk to be signed into law.

###