Ohio lawmakers urge federal funding be implemented for domestic semiconductor production

U.S. Reps. Bill Johnson (R-OH), Anthony Gonzalez (R-OH), and Troy Balderson (R-OH) joined their Ohio colleagues in urging congressional leaders to prioritize domestic semiconductor and microchip manufacturing in America by fully funding enacted legislation. 

The members and their Ohio colleagues sent a Jan. 14 letter to U.S. House of Representatives and Senate leadership calling on them to fully fund the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, which included billions in funding for domestic semiconductor production and incentives to invest in new semiconductor manufacturing facilities in the U.S. and would establish a National Semiconductor Technology Center.

The CHIPS for America Act was enacted into law as part of the National Defense Authorization Act for Fiscal Year 2021. The members note in their letter that 80 percent of the world’s chips are produced in Asia, primarily in China and Taiwan, and should not be outsourced any longer. 

“Congress now needs to fully fund the CHIPS Act to wholly realize the importance of this investment and provide chip manufacturers assistance for facility investment,” the lawmakers wrote. “We urge you to take action as soon as possible to allow for these critical investments to move forward in the United States.”

“We are allowing ourselves to be held hostage by the imbalance of foreign chip production. It’s past time to bolster this production here at home,” Rep. Balderson said in a statement.

“For far too long, the United States has relied on foreign nations to produce the microchips and semiconductors used in products that the American people need and demand every day. That must end immediately,” said Rep. Johnson in a separate statement.

“The United States’ national security, automotive sector and other critical industries are dependent on the timely access to semiconductor chips,” Rep. Gonzalez said. “It is troublesome to see most of this production outsourced overseas, particularly to adversaries like China, and it is critical we bring manufacturing back to the United States.”

Reps. Gonzalez, Johnson, and Balderson were joined by six other Ohio lawmakers in signing the letter, including U.S. Reps. Dave Joyce (R-OH), Brad Wenstrup (R-OH), and Bob Latta (R-OH).

Rep. Balderson also pointed out that restoring American leadership as a producer of advanced computer chip technology is important to bolster U.S. supply chain resiliency. “In addition to its potential for creating good-paying tech jobs, this investment takes a major step toward addressing the national chip shortage,” he said.

Rep. Johnson said that manufacturing chips abroad threatens national security and takes away U.S. jobs. “America invented microchip technology, and it was a big mistake to share it with countries like China,” he said. 

The lawmakers’ sentiments reflect those expressed in a Nov. 4, 2021, letter the Ohio members received from JobsOhio and other home-state economic development organizations in which they stated that “Ohio’s strong business climate, talented workforce and ideal geographic location” make the state a premier location for future semiconductor investments.