Kelly Statement on Urgent Need to Pass Microchip Manufacturing Plan
Today, Arizona Senator Mark Kelly announced his support for immediately passing a narrower version of the competition bill he has been working on for over a year that includes his microchip manufacturing plan, among other priorities.
Kelly is a member of the bipartisan conference committee tasked with finalizing landmark microchip and innovation legislation Kelly has championed and pushed forward in Congress for over a year. The legislation includes a $52 billion plan negotiated by Kelly to boost American microchip manufacturing and research that will create thousands of high-paying jobs in Arizona, strengthen supply chains, lower costs, and reduce the United States’ reliance on foreign countries for this technology critical to our national defense and economic security. Kelly has also prioritized including his FABS Act, which would implement an investment tax credit to further drive investment in Arizona.
“It’s well past time for Congress to pass into law our microchip manufacturing plan to create high-paying jobs and strengthen our supply chains,” said Senator Kelly. “While I support the overall competition bill and will continue working on it, there are microchip companies making plans right now about where to expand their operations. The best thing we can do to make sure they come here is to pass this immediately.”
Kelly added, “The investment tax credit we’ve successfully added to the bill will be a multiplier to bring even greater investment in American microchip manufacturing, especially in Arizona where Intel and TSMC are planning their expansions. Let’s get this done.”
Microchips are in countless products ranging from cell phones to cars and fighter jets. The United States used to produce nearly 40% of microchips globally, but now that number is closer to 12%. There is currently a global microchip shortage, slowing manufacturing lines and driving up prices. 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, and hosted semiconductor industry leaders at a meeting in Phoenix with the Arizona Commerce Authority.