[Congressional Record Volume 168, Number 119 (Tuesday, July 19, 2022)]
[Senate]
[Page S3347]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                             Semiconductors

  Mr. President, today, the Senate is going to take up the CHIPS Act of 
2022. It is critical to our economy and national security. It will 
provide billions of dollars to boost our domestic semiconductor 
manufacturing industry.
  In 1990, the United States produced 37 percent of the world's 
semiconductors--1990. Today, it is 12 percent.
  Semiconductors are used in everything from vacuum cleaners to 
refrigerators, cell phones, cars, and fighter jets. The ongoing global 
shortage of microchips has led us to supply chain constraints on goods, 
higher prices, layoffs, and a great dependency on foreign suppliers.
  For generations, my home State of Illinois has been a leader in auto 
manufacturing. This includes companies like Stellantis, which has a 
plant in Belvidere, IL. Unfortunately, this plant has had forced 
shutdowns and layoffs in recent years--not because they lack customers; 
they lack chips. The global shortage of semiconductors has forced 
Stellantis to slash its workforce by more than 70 percent over the past 
3 years. A similar story unfolded at Ford's Chicago Assembly Plant--
repeatedly forced to stop production and lay off workers because of a 
shortage of chips.
  This isn't just an Illinois problem. U.S. automakers are building an 
estimated 3 million fewer vehicles than projected this year because of 
the semiconductor shortage. The global chip shortage and resultant 
slowdown in auto manufacturing has driven up the cost of cars and 
trucks. A new car costs 17 percent more today than a year ago. Talk 
about dealing with inflation--when it comes to the cost of vehicles, 
you are dealing with a shortage in semiconductor chips.
  Across America, layoffs, closed production lines, long waits, and 
high prices for cars, appliances, and other basics are evidence of the 
urgent need to invest in our domestic manufacturing industry and 
domestic production of semiconductors. If we fail to make these 
investments, American workers and consumers will pay the price.
  This isn't only about our Nation's economy; it is also about our 
Nation's security. Many U.S. defense systems and platforms rely on 
foreign-made chips for their performance, and semiconductors are 
particularly critical for the next generation of defense technology.
  Most of the chips that power U.S. defense systems today are made in 
Asia. Think about that for a minute. We are dependent on Asia for the 
chips that we need to keep America safe.
  We have seen what a pandemic can do to supply chains. Think about how 
military conflict could end up with supply chains, global supply 
chains, in danger. Imagine if China, for instance, decided to 
deliberately withhold microchips from a nation to weaken their national 
defense. Rebuilding America's microchip production is about defending 
our Nation and our allies in a dangerous world.
  I understand some have concern about the subsidies in the bill, 
framing them as corporate giveaways. It is true that many of the 
chipmakers who would benefit from this bill are profitable or they 
moved production overseas despite receiving previous Federal funding. 
But in this bill are incentives to bring microchip production back to 
the United States, and they are absolutely necessary for us to compete 
with other nations that are trying to lure chipmakers away from the 
United States.
  The bill also includes guardrails to protect and promote production 
in the United States, such as prohibiting the manufacture of certain 
chips in countries of concern, like China.
  Ultimately, this bill makes strategic investment to boost our 
domestic supply chain, counter the threat posed by other countries, 
like China and Russia, and help American consumers. I urge my 
colleagues to pass the CHIPS Act without delay.
  Mr. President, I would like to make one last statement on the record.
  The PRESIDING OFFICER (Mr. Padilla). Without objection, it is so 
ordered.