Phoenix Business Journal - My View: Bill to Help Arizona Lead in Microchip Production a Step Closer

Semiconductors, also known as microchips, are in everything from your washer and dryer to the military's most advanced fighter jets. A resilient microchip supply chain based here in the U.S. is important to our national security, infrastructure and economy.

But we've got a problem -- we're facing a shortage of microchips and don't have the capacity right now to produce enough of them. The pandemic put a wrench in our supply chain, and as the world economy bounces back, demand for technologies containing these vital chips still outpaces the supply. That's why it's taking Arizonans longer to get a car at the dealership, why holiday gifts were harder to find on store shelves, and perhaps most importantly, why prices on everyday goods have gone up across the board.

After I was sworn into the Senate over a year ago, I hit the ground running by leading the fight to fully fund the CHIPS for America Act. After months of negotiations with my Senate colleagues, both Republicans and Democrats, we reached a bipartisan deal to invest $52 billion to support the growth of the semiconductor industry in the United States, including right here in Arizona. Along the way it will improve lagging supply chains, create thousands of great-paying local jobs and lower everyday costs for Arizonans.

A race with China to build chips

Right now, our microchip leadership is at risk because global competitors like China are rapidly building up their own domestic industries and technological capabilities. Semiconductors were first developed in the United States, yet the U.S. share of global semiconductor manufacturing capacity has declined from nearly 40% 30 years ago to only 12% today. This is worrisome, not only from an economic standpoint, but from a national security one, as well. These tiny devices are crucial for future technologies like artificial intelligence, 5G, quantum computing, advanced weapon systems and more. We can't rely on our adversaries to supply us with the technology we need. We must reshore the capacity to manufacture semiconductors.

Here's the thing: Arizona is poised to lead the country in boosting American microchip manufacturing. We already have a large semiconductor industry here, and we have the business-friendly climate and the talented workforce to keep it growing. I've seen this all firsthand.

In June last year, the Senate passed the United States Innovation and Competition Act, which included my plan to boost microchip manufacturing. We'll do that by creating incentives for the construction and expansion of microchip fabrication plants, research and development funding for the next generation of microchips, and support for Department of Defense workforce development initiatives, in coordination with leading Arizona industries and universities, including Arizona State University.

Intel, TSMC investing in the Valley

After constant conversations with leaders in Washington and in Arizona, CEOs across the country, and microchip experts, I was glad to see the U.S. House of Representatives finally pass my plan in its own version of this competition bill back in February, which has gotten us closer to the finish line.

The bill we've worked so hard on is heading to a conference committee right now, which is a process where members of Congress from both chambers will iron out the differences between their two bills. As one of the Senators chosen to serve on this conference committee, my priority during these final negotiations remains the same as when I started: work with Republicans and Democrats to deliver for Arizonans and deliver more manufacturing of microchips right here in the state, create thousands of high-paying jobs, fix for our supply chain issues, and lower costs for cars and appliances for families.

And I'm not the only one recognizing our state's potential: Intel Corp. and Taiwan Semiconductor Manufacturing Co. are just two examples of companies with plans in motion to bring more manufacturing to the Valley -- and their ripple effect on our economy will be big. Thanks to our work on this legislation, it's only a matter of time until more investments and more jobs arrive in Arizona.

A yearlong effort in the making, this microchip manufacturing plan is closer than ever to becoming law. I'm looking forward to making this happen so that Arizona can continue to be the best state to bring and grow a company.

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