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WASHINGTON, DC—Congressman Paul D. Tonko celebrated the recently announced bipartisan, bicameral agreement on the CHIPS Act, legislation that invests $52 billion in semiconductor chip manufacturing and includes his bipartisan Microelectronics Research for Energy Innovation Act that empowers the Department of Energy to drive up research and development of microelectronics. This legislation is expected to receive approval from both the House and Senate this week and be sent to President Biden to be signed into law.  

“This legislation is the culmination of months of planning and advocacy to bring forth powerful legislation that will address supply chain needs in our nation, create good-paying jobs, and lower costs for consumers,” Congressman Tonko said. “In recent decades, our nation has fallen behind the rest of the world in developing semiconductor manufacturing—technology that powers our cars, phones, vacuums, and so much more. This is not only a critical national security concern, it also drives up inflation when manufacturers are unable to secure chips needed to get products to market. Our legislation seizes on the generational opportunity to secure and grow American leadership in this critical field and to create good jobs here in the Capital Region.”  

America’s semiconductor industry has fallen by the wayside in recent decades, relying on manufacturing from sources overseas such as Taiwan—which accounts for more than 90 percent of advanced semiconductor manufacturing—for chip technology. The legislation Tonko helped advance would reinvigorate American manufacturing and strengthen the nation by making it less susceptible to global supply chain disruptions like the COVID pandemic and Russia’s invasion of Ukraine.  

During negotiations in Congress, Tonko successfully fought alongside his colleagues in the House to prioritize and secure the $52 billion investment in domestic manufacturing that will help grow jobs here in the Capital Region. Additionally, House negotiators were able to secure critical guardrails to this funding, ensuring it won’t go to companies investing in our overseas competitors and preventing funds from being used for stock buybacks or dividend payment.  

Tonko also successfully advocated for the inclusion of the Micro Act, legislation that will invest in research and development for the next generation of semiconductor technologies. 

Tonko continued, “the bipartisan Micro Act I authored will further complement CHIPS by accelerating early-stage microelectronics research at the Department of Energy, ensuring domestic leadership in this industry for decades to come. New York’s Capital Region in particular has so much to gain from strong investments in semiconductor manufacturing and is poised to lead the nation in advancements in this emerging field. I am proud of my work to bring this critical package to fruition and will continue pushing for legislative action that delivers for American workers, consumers, and communities.”  

The CHIPS Act: 

• Delivers $52 billion to incentivize private-sector investments and continued American leadership in semiconductor fabrication and will help address supply chain disruptions.
• Prohibits CHIPS grant recipients from using funds for stock buybacks or payment of dividends. 
• Prohibits CHIPS grant recipients from engaging in expansions of semiconductor manufacturing in countries of concern. 
• In addition to semiconductor manufacturing, the package supports significant increases to U.S. research and development efforts through the National Science Foundation, the Department of Energy, and the National Institute of Standards and Technology, which will fund innovation in basic research and next-generation technologies.  

The Microelectronics Research for Energy Innovation Act: 

• Requires the DOE to establish a program on the development, demonstration, and commercial application of microelectronics to drive the nation’s global competitiveness in the field of microelectronics. 
• Establishes up to four Microelectronics Science Research Centers to conduct mission driven research to address foundational challenges in the design, development, and fabrication of microelectronics and to facilitate the translation of research results to industry. 

Tonko visited Albany Nanotech last month to discuss the semiconductor industry in New York and beyond, and the importance of investing in chip manufacturing to address supply chain disruptions and strengthen the industry. 

He also led a letter with the entire NY delegation earlier this year calling on Commerce Secretary Raimondo to further cement the state a hub of semiconductor manufacturing by establishing a National Semiconductor Technology Center (NSTC) in New York. 

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