By Miguel Ambriz | Cronkite News
WASHINGTON – In an election year, cooperation between Republicans and Democrats tends to be rare.
But this week, Sens. Mark Kelly and Ted Cruz, an Arizona Democrat and a Texas Republican, together succeeded in pushing through a measure to cut red tape that delays new U.S. semiconductor factories.
Chipmaking is a major industry in both states. Lawmakers in both parties view building domestic capacity as a matter of national security, as do both President Joe Biden and former President Donald Trump.
“By streamlining the process the factories will get to production quicker without barriers. This is a national security issue and it’s good paying jobs that you can raise a family on without a college education,” Kelly said in an interview at the Capitol.
The “Building Chips in America Act” – which proves that bipartisanship is still feasible under the right conditions – now goes to Biden’s desk. The president is expected to sign it despite objections from environmentalists.
The Senate approved the bill unanimously in December. Then it stalled.
“It was blocked in the House, Mark and I have been working closely together to get it past the finish line,” Cruz said in a brief interview at the Capitol.
The logjam finally broke on Sept. 23 and the bill passed on a 257-125 vote in the House. Fewer than half the Democrats and nearly all Republicans supported it.
“We went to a lot of folks,” Kelly said. “Last couple of days I was on the phone with Democrats in the House to get all the votes for this bill.”
The Kelly-Cruz bill will streamline and speed the environmental reviews required for semiconductor projects.
Biden signed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act in August 2022.
By then, according to the Council on Foreign Relations, the U.S. share of global microchip manufacturing had plunged from 60% in 1990 to 12%. Taiwan had 60% of the market, and supplied 90% of the most advanced chips.
Arizona now a semiconductor hotspot
The CHIPS Act provided $53 billion for domestic semiconductor research and manufacturing, though even before that bill went into law, Arizona was on its way to becoming a magnet for the industry.
Intel and Taiwan Semiconductor Manufacturing Co. have two of the biggest chipmaking facilities in the country in Arizona, and each has received billions in grants and loans to expand production in the state under the CHIPS Act. What’s more, Amkor Technology Inc. is planning a chip packaging megaproject in Peoria where it will handle chips used in Apple iPhones, as well as chips made by TSMC.
Semiconductors are vital to modern electronics from phones, medical devices, cars and robotics. The Semiconductor Industry Association projected 203% growth in the U.S. by 2032.
Cruz is in the midst of a fierce campaign for a third term. His opponent, Rep. Colin Allred, a Dallas Democrat and former NFL player, has run ads attacking him for opposing the original CHIPS Act while taking credit for its fruits.
Cruz says he voted against it because of provisions that give billions to private companies. He supported lowering taxes on semiconductor projects.
Arizona Sen. Kyrsten Sinema, an independent, was among the co-sponsors of the Kelly-Cruz bill.
“In order to remain globally competitive in semiconductor manufacturing, we must cut red tape to fuel the completion of critical facilities and projects,” she said in a statement. “I’m thrilled our bipartisan bill passed the U.S. House.”
Four Republicans and one Democrat from Arizona voted for the Kelly-Cruz bill in the House. Rep. Paul Gosar, R-Bullhead City, opposed it. Three others were absent.
“We want bipartisan legislation. It is the best way to get things done,” Kelly said. “We are always looking for opportunities.”
