Gallego Urges Inclusion of Bipartisan Provision to Boost American Chips Manufacturing in Defense Bill
WASHINGTON, DC – Rep. Ruben Gallego (AZ-03), Ranking Member on the Armed Services Subcommittee on Intelligence and Special Operations and conferee for the fiscal year (FY) 2024 National Defense Authorization Act (NDAA), sent a letter to House and Senate Armed Services Committees leadership urging including of the bipartisan Building Chips in American Act in this year’s NDAA.
“The passage of the CHIPS and Science Act has already provided a boon to our economy, investing billions in new domestic manufacturing and innovations. It is also strengthening our national security by creating direct pathways for domestic designers and researchers to move their innovations to market, known as the transition from ‘lab to fab’,” writes Rep. Gallego.
He continues, “By passing the Building Chips in America Act, we can further support the ambitious goals of the CHIPS and Science Act by further incentivizing investment in our semiconductor supply chain. It is imperative that we continue to prioritize the development of a domestic semiconductor industry to drive up American innovation and to shore up our supply chains from potential shocks to global production…To that end, I respectfully request the inclusion of H.R. 4549, or similar provisions, in any final FY24 NDAA Conference agreement.”
Rep. Gallego also joined a group of 118 bipartisan, bicameral lawmakers in sending a letter to Senate and House Armed Services Committees leaders urging them to preserve the Building Chips in America Act in the FY 2024 NDAA.
“Historically, NEPA reviews apply to projects that receive a significant portion of federal funding, giving the Federal government sufficient control over the project’s outcome. This is not the case for the CHIPS program,” the lawmakers write.
Federal funding for CHIPS Act projects will comprise a minimal share of the cost, but they would still be deemed “major federal actions.”
“This could halt or delay commencement of new projects, impacting the United States’ ability to bolster its national security interests, economic growth, competitiveness, and technological leadership,” the lawmakers continue.
The Building Chips in America Act addresses this challenge by clarifying the scope of NEPA reviews while keeping in place state and federal protections for clean air and clean water.
“Interruptions and delays to semiconductor manufacturing projects would undermine the goals of the CHIPS Act and exacerbate risks to our economic and national security, without providing additional benefits for environmental protection. Therefore, we urge you to retain Section 1090G of S. 2226 in the final FY24 NDAA,” they conclude.
Rep. Gallego announced his support for the Building Chips in America Act earlier this year. The legislation would ensure federal environmental reviews are completed in a timely manner for microchip projects by streamlining approval for projects currently under construction and others that could be delayed, and by providing the Secretary of Commerce greater tools to carry out reviews more effectively and efficiently.
This will give the administration additional authority to implement the CHIPS and Science Act and maximize its potential to boost domestic microchip manufacturing, strengthen domestic supply chains, lower costs, and improve national security more effectively.
The CHIPS and Science Act, which became law last year, provides $52.7 billion for semiconductor research, development, manufacturing, and workforce development. Arizona is currently ranked fourth in semiconductor manufacturing, and over the coming years, is expected to see significant dollars from the Act with companies like TSMC, Intel, Microchip, and NXP investing in the state.