Hagerty, Kelly, Colleagues Introduce Bipartisan, Bicameral Bill to Remove Bureaucratic Barriers to American Production of Semiconductors

July 11, 2023

Building Chips in America Act would support billions in domestic manufacturing investments by streamlining federal reviews 

WASHINGTON—United States Senators Bill Hagerty (R-TN) and Mark Kelly (D-AZ), along with Senators Todd Young (R-IN) and Sherrod Brown (D-OH), as well as U.S. Representatives Jen Kiggans (R-VA-02), Scott Peters (D-CA-50), Brandon Williams (R-NY-22), Colin Allred (D-TX-32), and Michael McCaul (R-TX-10), today introduced the Building Chips in America Act, legislation that will maximize efforts to bring microchip manufacturing back to America through commonsense reforms that remove unnecessary bureaucratic obstacles. 

Following the passage of the CHIPS and Science Act, companies throughout the semiconductor supply chain have announced plans to invest hundreds of billions in new domestic manufacturing projects. These projects are critical to ending America’s reliance upon Communist China for key products, reinvigorating our manufacturing independence, and unleashing American competitiveness and innovation.

The Building Chips in America Act would ensure federal environmental reviews are completed in a timely manner for these microchip projects supported by the CHIPS and Science Act by streamlining approval for projects and by providing the Secretary of Commerce greater tools to more effectively and efficiently carry out reviews, which will remove self-imposed impediments to American jobs and security.

More specifically, this legislation will provide additional authority to more effectively implement the CHIPS and Science Act and maximize its potential to boost American microchip manufacturing, strengthen domestic supply chains, lower costs and create jobs, and improve national security.  

The Building Chips in America Act augments Hagerty’s legislation enacted during the 117th Congress to cut bureaucratic red tape for key national-security manufacturing operations, like semiconductors, by granting them access to an improved federal permitting program that will also accelerate American development of these critical projects in the competition with adversaries like Communist China. 

“Our nation’s economic and national security demands that we bring back—as quickly as possible—American production of strategic commodities like semiconductors, which requires eliminating the unnecessary bureaucratic red tape that stands in the way,” said Senator Hagerty. “I am pleased to join Senator Kelly in introducing this legislation to speed up these crucial American projects and advance commonsense permitting reform.” 

“Our CHIPS Law is bringing billions of dollars in investment to Arizona’s microchip manufacturing industry—creating thousands of good-paying jobs, many of which don’t require a four-year degree,” said Senator Kelly. “The Building Chips in America Act will ensure these critical projects can continue construction on time while protecting our clean air and water. I will keep working with my Republican and Democratic colleagues and with Secretary Raimondo and the administration, to ensure the CHIPS Act is implemented to maximize the impact for our economy and our national security.” 

“The CHIPS and Science Act included manufacturing incentives vital to increasing chip production here in the U.S., protecting our national security interests and boosting our economic security at the same time,” said Senator Young. However, as implementation proceeds, unnecessary regulatory burdens are threatening to slow down these critical investments in domestic semiconductor manufacturing and pause construction that has already begun. The Building Chips in America Act will cut red tape and solidify our nation’s ability to successfully onshore chip production as quickly as possible.” 

“By investing in Ohio semiconductor manufacturing and Ohio talent, we can restore critical supply chains, help lower costs for Ohioans, and create thousands of jobs,” said Senator Brown. “This legislation will help prevent delays to semiconductor manufacturing projects the CHIPS Act made possible and encourage future investments in American manufacturing.” 

“One of the greatest national security threats we face today is China’s chokehold on our defense industrial base,” said Representative Kiggans. “Unfortunately, federal bureaucracy is holding up critical projects started by the CHIPS Act while the Chinese Communist Party spends billions of dollars to become the world’s leading producer of advanced semiconductors. I’m proud to introduce this bipartisan legislation to cut red tape and empower America’s domestic manufacturers to succeed for the sake of our national security and our economy!” 

“Last year Congress made historic investments in our microchip industry that are supercharging innovation in San Diego and around the country,” said Representative Peters. “Unfortunately, permitting regulations are delaying projects that are already under construction just because they receive CHIPS Act funding. Our bill ensures that we do not lose a second in the fight for the future while maintaining the world standard in environmental protection.” 

“The Building Chips for America Act will be a monumental win for Central New York and the Mohawk Valley—expediting construction locally so we can begin semiconductor manufacturing, expand long-term projects, and bring back good paying jobs to our community,” said Representative Williams. “Standing with Rep. Kiggans to deliver this victory for our districts is an honor and privilege. This Act will provide short-term relief to local and future projects, by eliminating the redundancies and regulatory requirements set under NEPA which would force projects like Micron to undergo environmental reviews that are already required by federal, state, and local mandates.” 

“In order to take full advantage of the incentives in the CHIPS Act to grow the semiconductor industry and create jobs in Texas and across the country, we must ensure these projects can get approved in a timely manner,” said Representative Allred. “Texas is a leader in semiconductor chip research and manufacturing, and that’s why I was proud to support the CHIPS Act. This bipartisan bill is a common-sense change that will ensure that the CHIPS Act delivers on its promise and these critical projects can get approved.” 

Full text of the legislation can be found here.