Governors urge passage of semiconductor legislation

A bipartisan group of nine governors, including Gov. Tom Wolf, recently sent a letter to the leadership of the U.S. House and Senate, urging the passage of the Creating Helpful Incentives for the Production of Semiconductors for America (CHIPS) Act.

The CHIPS Act would address the global shortage of semiconductors by encouraging production to return to the United States. This would strengthen national security, create a resilient supply chain, grow the economy, and create or protect hundreds of thousands of jobs, the governors said.

Semiconductors are used in multiple industries including the defense industry, farm tractors health care devices, and automobiles. The recent semiconductor shortage has affected more than 575,000 American jobs.

The auto industry, for example, lost an estimated 2.2 million vehicles from planned production during the first three quarters of the year, and this is expected to continue through the first half of 2023.

The U.S. Innovation and Competition Act included $52 billion to boost domestic semiconductor production and research.

The others signatories are Kentucky Gov. Andy Beshear, North Carolina Gov. Roy Cooper, Wisconsin Gov. Tony Evers, Alabama Gov. Kay Ivey, Kansas Gov. Laura Kelly, California Gov. Gavin Newsom, Illinois Gov. JB Pritzker, and Michigan Gov. Gretchen Whitmer.