Gov.Laura Kelly today announced she has joined a bipartisan coalition of governors from across the country urging Congressional leadership to approve full funding of the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act.
Gov. Kelly, along with Govs. Tony Evers, Wisconsin; Roy Cooper, North Carolina; Andy Beshear, Kentucky; Tom Wolf, Pennsylvania; Kay Ivey, Alabama; J.B. Pritzker, Illinois; Gavin Newsom, California; and Gretchen Whitmer, Michigan, sent a letter to Congress urging swift action to fund the bipartisan program that will turbocharge U.S. production of semiconductors, including the “mature node” chips that are critically important to automakers and parts suppliers, and strengthen the supply chain.
“As the global semiconductor shortage continues to challenge our automotive manufacturing industry and threaten our supply chain, it is critical that Congress take immediate action on the CHIPS Act,” Gov. Kelly said. “I look forward to working with our federal partners – and with my fellow governors – to deliver solutions for our auto manufacturing industry that will secure our supply chain, create jobs, protect our workers, and further strengthen our state’s already booming economy.”
The letter details that supply challenges have idled auto plants across the country, impacting more than 575,000 auto-related jobs.
In Kansas City, Kansas, the General Motors’ plant first shift is working, but the second shift is laid off because of parts shortages.
The bipartisan U.S. Innovation and Competition Act (USICA), already passed by the Senate, included funding for the CHIPS Act re-shoring provisions. It includes $52 billion in incentives to boost domestic semiconductor production and research, $2 billion of which would be dedicated to incentivizing production of the “mature node” semiconductors used by automakers and parts suppliers. These chips are also a key component for other manufacturing sectors, including medical devices, agricultural machinery like farm tractors and combines, as well as radiation-proof chips required by the national defense industrial base.
In the letter, the governors urge the House and Senate to come together to find common ground on the USICA, including full funding for the CHIPS Act..
The governors’ letter is online at https://content.govdelivery.com/attachments/MIEOG/2021/11/09/file_attachments/1991877/Multistate%20Letter%20re%20CHIPS%20Act%20Funding%20-%20Nov%202021.pdf