Statement from National Economic Advisor Lael Brainard on Today’s CHIPS & Science Act Announcement

President Biden signed the CHIPS & Science Act to restore America’s leadership in semiconductor manufacturing and ensure America’s consumers, businesses, and military maintain reliable access to the chips that underpin nearly every aspect of our economy. We all experienced the impacts of global supply chain stress and semiconductor shortages during the pandemic, and the CHIPS and Science Act provides critical investments to build a robust, resilient American supply chain of semiconductors that power everything from home goods to electric vehicles to satellites. Already as a result of President Biden’s policies and actions in partnership with the private sector, supply chain stress has fallen from near record highs to record lows, and inflation has closely followed.

Today, the Department of Commerce announced the second preliminary memorandum of terms (PMT) for approximately $162 million dollars to be awarded to Microchip Technology. The chips and microcontroller units (MCUs) that Microchip fabricates are essential components in a wide range of consumer and defense products that are critical to American manufacturing, including electric vehicles, smart devices you wear and use in your home, computers, internet routers, and lifesaving medical devices. This manufacturing investment in Oregon and Colorado will advance the President’s goal of making semiconductors in America again and reducing reliance on global supply chains that led to price spikes and long wait lines during the pandemic. This funding, which is only a fraction of the additional private investment that Microchip is making in these projects, will boost Microchip’s production nearly three-fold and create over 700 jobs. By making this investment, the Biden-Harris administration is addressing a vital link in our technology supply chain that impacts millions of American consumers and businesses.

As the Department of Commerce continues to make award announcements in the coming months, President Biden’s Investing in America agenda will continue to demonstrate how it is delivering for hardworking Americans, creating good jobs, strengthening American supply chains, and protecting our national security.

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