After Year-Long Push, U.S. Senate Passes Kelly’s Microchip Manufacturing Bill

Kelly was a chief negotiator of the CHIPS Act of 2022 which will support the domestic semiconductor industry, lower costs, create high-paying Arizona jobs

Today, after a year-long push, the United States Senate passed Arizona Senator Mark Kelly’s microchip manufacturing plan as part of the CHIPS Act of 2022, a bipartisan bill that will create tens of thousands of high-paying jobs in Arizona, fix supply chains, lower costs, strengthen our national security, and reinvigorate U.S. efforts to lead the world in research, development, and innovation. The House is expected to immediately consider the legislation this week. 

For over a year, Kelly championed the three pieces of legislation that form the backbone of the Senate-passed CHIPS Act of 2022 – serving as a chief negotiator of the bill’s $52 billion plan to boost domestic microchip manufacturing, originally cosponsoring the U.S. Innovation and Competition Act, and leading the FABS Act. This legislation will help establish Arizona as a global hub for microelectronics research, development, testing, manufacturing, and packaging. 

“I am glad to say that after more than a year of hard work and negotiations, we are almost at the finish line to get our microchip manufacturing bill signed into law,” said Senator Mark Kelly, a chief negotiator of the Senate-passed CHIPS Act of 2022. “By creating more microchips here at home, our bipartisan legislation will lower costs for everyday goods and strengthen Arizona’s position as a leader in the production and manufacturing of this technology that is critical to our economy and to our country’s national security. I’ll continue working with Republicans and Democrats to get this onto the President’s desk and signed into law.” 

Arizona is home to one of the largest microchip industries in the country and is poised to grow with investment plans from Intel and the Taiwan Semiconductor Manufacturing Company. Kelly has recently visited both companies, hosted semiconductor industry leaders at a meeting in Phoenix with the Arizona Commerce Authority, and saw firsthand the work done by Arizona’s community colleges to train workers for jobs in the semiconductor industry. 

In addition, the bipartisan legislation reauthorizes key federal R&D programs, including at the National Science Foundation, the Department of Energy, the Department of Commerce, and the National Aeronautics and Space Administration (NASA). The bill includes four of Senator Kelly’s bipartisan bills: the Microelectronics Research for Energy Innovation Act, the Strengthening STEM Ecosystems Act, the Investing in Domestic Semiconductor Manufacturing Act, and the Advancing Human Spaceflight Act. Click HERE to read a summary of the CHIPS Act of 2022. 

See what leaders are saying about the passage of Kelly’s CHIPS Act of 2022:

“We’re excited for the Senate’s bipartisan vote today to fund the CHIPS Act and urge the House to follow suit. We will move forward together to advance American leadership in semiconductor manufacturing and R&D and strengthen American national and economic security. We applaud Senator Kelly’s leadership and year-long effort to get this done in the Senate. Funding the CHIPS Act will enable Intel to continue growing in Arizona for years to come,” said Intel CEO Pat Gelsinger. 

“CHIPS Act funding would direct global semiconductor investment towards U.S. soil and provide critical support to revitalize advanced semiconductor manufacturing in the U.S. Construction of TSMC’s 5nm fab in Arizona, the country’s most advanced chip manufacturing plant, is well underway and is right on track,” said CEO and President of TSMC Arizona Rick Cassidy. “TSMC appreciates the work of our dedicated partners on the state, local, and federal levels, like Senator Kelly. These incentives will also enable the building of a U.S. semiconductor manufacturing ecosystem, including our suppliers to expand production capabilities for years to come, in alignment with TSMC Arizona’s commitment to support leading-edge manufacturing in the United States.” 

“There is nothing more critical to America’s global economic competitiveness and national security than the passage of this legislation,” said ASU President Michael M. Crow. “This commitment to breathe new life into the microelectronics industry in the United States is the product of a bi-partisan effort achieved through the stubborn determination of leaders like Senator Mark Kelly. His persistence is a service to the country and to the state of Arizona and it is to our mutual benefit that Senator Kelly kept at it until the mission was accomplished. Once an astronaut, forever someone who refuses to believe it can’t be done.” 

“Funding provided in the CHIPS Act is critical to the innovation economy in Greater Phoenix and will provide opportunities for semiconductor manufacturing expansion, advanced R&D capabilities, and thousands of long-term and high-quality jobs, fortifying the ecosystem with an investment that enhances U.S. competitiveness and signifies globally that we are prioritizing domestic manufacturing and supply chains,” said Greater Phoenix Economic Council President Chris Camacho. “We’re grateful for Sen. Kelly’s leadership advocating on behalf of the region and the country, the semiconductor ecosystem, and our community and for taking action to secure its future.” 

“The WESTMARC Board of Directors is grateful for Senator Kelly’s tenacity in getting the CHIPS Act across the goal line. As the West Valley grows our tech workforce to support the chip manufacturing industry, this legislation will facilitate new high-wage jobs and economic vitality for our region and state,” said Sintra Hoffman, President and CEO of Westmarc Board of Directors. 

“Big thanks to Senator Mark Kelly for his relentless efforts to get the CHIPS Act passed,” said Peoria Mayor Cathy Carlat. “This bill will directly benefit Peoria by creating a favorable environment for new employers and quality jobs for Peoria residents to work close to home.” 

“I am focused on a more diverse economy with high-quality jobs, and passage of the CHIPS Act is vital for this important industry growing in our region,” said Phoenix Mayor Kate Gallego. “We are quickly becoming a global semiconductor hub in the United States, with the best semiconductor training programs in the world. This is a once-in-a-generation opportunity, important to competitiveness and our innovation economy here in Arizona and throughout the country. We are grateful for Senator Kelly’s leadership and commitment to advancing this bipartisan bill.” 

“Thank you to our senators and DC delegates for their advocacy and ensuring the bipartisan passage of the CHIPS Act. This legislation is critical to secure the future of the United States as a leader in semiconductor manufacturing. Chandler has a long history of supporting the semiconducting industry and recognizes the investments outlined in the CHIPS Act will further support economic and workforce development and technological innovation throughout Arizona,” said Chandler Mayor Kevin Hartke. 

“Over the past few years, Arizona has become a hub for semiconductor manufacturing, and the Senate’s passage of the CHIPS Act of 2022 will result in even more expansive growth of this industry in our state. As Arizona’s largest workforce training provider, and one of the largest in the nation, the Maricopa Community Colleges play a critical role in the success of this industry and implementation of this legislation,” said Marie Sullivan, Maricopa County Community College District Governing Board President. “The investments in the CHIPS Act of 2022 to support our colleges’ ability to develop new programs and expand our existing ones to meet this growing workforce demand is extremely appreciated. Thank you to Senator Kelly who helped shepherd this legislation through the Senate and fight for these critical semiconductor workforce development investments.”

“The passage of federal CHIPS legislation, among the most important pieces of legislation for Arizona and the nation, is tremendously significant for national security and the Arizona economy. It will ensure the microchip industry is enhanced and strengthened here at home and decrease dependence on the international markets,” said Greater Phoenix Leadership President and CEO Neil G. Giuliano. “Senator Kelly has been a true champion for Arizona and business leaders across the state are grateful for his focused leadership which helped to make it happen. This act will ensure more jobs and economic opportunity will be available for Arizonans, now and into the future.”

“The Maricopa Community Colleges has been leading the way in semiconductor manufacturing workforce development by creating the Semiconductor Technician Quick Start – a two-week, 40-hour program to expediently train individuals to gain the skills necessary for a career as a semiconductor technician,” said Dr. Steven R. Gonzales, Interim Chancellor of the Maricopa Community Colleges. “With the Senate’s passage of the CHIPS Act of 2022 and the inclusion of new investments to support workforce development for this growing industry in our state and country, I anticipate our innovative QuickStart model will not only grow within our District but also act as a model across the nation. Thank you to Senator Kelly for all of his leadership and work to move this bill forward. I am excited about the passage of this important legislation and eager to get to work to further support the development of this high-demand and high-wage workforce.”

“Competing in the global technology market will depend on reducing our country’s reliance on outsourced components and labor,” said Steven G. Zylstra, President and CEO of the Arizona Technology Council and SciTech Institute. “The Council has long supported CHIPS Act Funding, as well as the National Science Foundation bill, which bolsters the U.S. semiconductor industry and provides much-needed resources to the STEM ecosystem to train our future technology workforce. As Arizona grows into a center for semiconductor manufacturing, these investments will be critical to our state’s innovation economy. We commend Senator Kelly for his tireless work on this legislation.”

“We are very pleased at the Senate’s passage of a funded CHIPS Act and grateful that there is bipartisan consensus in Washington, and in Arizona, about the need to ensure a stable semiconductor supply chain and to support domestic manufacturing,” said Paul Hart, Executive Vice-President and General Manager of NXP’s Radio Power Business. “The semiconductors NXP manufactures at its facilities in Chandler, Arizona are vital to the automotive and 5G communication infrastructure supply chains. Federal, state, and local support will have a big impact on supply chain security. We are grateful to Senator Kelly for his leadership on this critically important issue.” 

“On behalf of EMD Electronics’ more than two hundred employees in Arizona, located at our US semiconductor business headquarters in Tempe, at customer sites, and at our brand new facility in Chandler that is set to open within the coming year, we want to thank Senator Kelly for his unwavering support of the CHIPS Act. His efforts, especially ensuring companies both up and downstream are eligible to apply for support, will not only help strengthen U.S. chip supply chain resiliency but also be a success story for the state of Arizona,” said Jeff White, President of EMD Electronics. “We are encouraged that the Senate has advanced this legislation that will kickstart efforts to bolster semiconductor production here in the U.S.  Our company has a legacy of more than 350 years of leadership in science and technology and EMD Electronics is at the heart of electronics innovation. Almost every chip in the world uses at least one our products or services. Senator Kelly has always been a champion for our industry and technology in Arizona and we are excited to be a part of the state’s growing importance to semiconductor manufacturing.”

“The CHIPS Act contains many important provisions that are vital to advancing the United States’ economic future, making critical investments in manufacturing and in research that will support our global standing and our national security. The University of Arizona is particularly glad to see the strong language in the bill solidifying Congress’ support of the Near-Earth Object (NEO) Surveyor Mission, demonstrating Congress’ concern not only with our national security but with our planet’s security. The NEO Surveyor Mission, led by the University of Arizona, directly responds to the congressional mandate to secure our planet by identifying near-earth objects that could cause catastrophic regional damage. We are so pleased to see Congress once again reiterate its commitment to this mission and its timely launch,” said Dr. Elizabeth “Betsy” Cantwell, Senior Vice President for Research and Innovation at the University of Arizona.  

“We applaud the Senate’s bipartisan passage of the CHIPS For America Act,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “This critical legislation will significantly strengthen U.S. competitiveness for semiconductors, bringing more jobs and investments to Arizona. In addition, Arizona is well positioned to benefit from new research funding advanced in the bill. Under Governor Ducey’s leadership, Arizona has become the premier destination for semiconductor investments – with more opportunity ahead. I’m grateful to Senator Kelly, a key member of the conference committee, and all our federal partners for championing this crucial legislation to bolster America’s semiconductor industry.”