Spanberger Highlights Robust, Job-Creating Investments for Virginia After Bipartisan CHIPS and Science Act Signed Into Law

The CHIPS and Science Act Encourages Companies to Expand their Operations and Build New Plants in Virginia and Across America

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HENRICO, V.A. — U.S. Representative Abigail Spanberger is highlighting the investments that are headed to communities across Virginia to increase U.S. manufacturing capacity and domestic supply of semiconductors. The bipartisan CHIPS and Science Act was signed into law in August by President Joe Biden and encourages companies to expand their operations, boost research activities, and build new plants in Virginia and across America.

Spanberger — who voted to pass the legislation — released a new video explaining how this new law strengthens America’s semiconductor industry, prevents shortages, and reduces U.S. dependence on foreign-made semiconductors.

“Since coming to Congress, I have heard directly from local business owners, workers, and Virginia leaders about how these investments would take advantage of the shovel-ready sites in the Commonwealth and grow Virginia’s workforce in this key sector,” said Spanberger. “I’ve also heard from industries in Virginia that find themselves consistently falling behind foreign competitors simply because of the chronic unavailability of chips for highly mechanized industries, including logging and shipping. The CHIPS and Science Act makes robust investments that will address these issues and push companies to expand their operations here in America.”

Although the United States invented the semiconductor, only 12 percent of semiconductors are currently made in America. According to the White House, American manufacturers and consumers rely on East Asia for 75 percent of global semiconductor production.

The CHIPS and Science Act provides:

• $52.7 billion for American semiconductor research, development, manufacturing, and workforce development

• $39 billion in manufacturing incentives, including

• $2 billion for the legacy chips used in automobiles and defense systems

• $13.2 billion in R&D and workforce development

• $500 million to provide for international information communications technology security and semiconductor supply chain activities

• A 25 percent investment tax credit for capital expenses for manufacturing of semiconductors and related equipment

The distribution of these funds comes with strong oversight — ensuring that recipients do not build certain facilities in China and other countries of concern, as well as and preventing companies from using taxpayer funds for stock buybacks and shareholder dividends.

In the mid-1960s — at the height of the Space Race — the federal government invested 2 percent of GDP in research and development. But by 2020, that number had fallen to less than 1 percent. The CHIPS and Science Act increases federal investment to secure domestic supply, supports high-skilled manufacturing jobs, and catalyzes hundreds of billions of dollars more in private investment.

Additionally, the CHIPS and Science Act:

• Authorizes $10 billion to catalyze regional economic growth and development,

• Establishes a technology, innovation, and partnerships directorate at the National Science Foundation (NSF) to focus on fields like semiconductors and advanced computing, advanced communications technology, advanced energy technologies, quantum information technologies, and biotechnology, and

• Provides STEM opportunities to more of America to participate in good-paying skilled jobs.

BACKGROUND

Spanberger has long worked to strengthen America’s semiconductor research, development, and production — including in Virginia. In August 2022, Spanberger voted with a bipartisan majority of the U.S. House to send the bipartisan legislation to the President’s desk after pressing House leadership for an immediate vote following U.S. Senate passage.

And earlier this year, Spanberger and U.S. Senator Mark Warner (D-VA) led the Virginia congressional delegation in calling on the U.S. Department of Commerce to consider Virginia for future locations of major semiconductor production and research facilities made possible through investments in the CHIPS and Science Act.

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