Bill Text: NJ AR141 | 2022-2023 | Regular Session | Introduced
Bill Title: Urges Congress to reconcile United States Innovation and Competition Act and American COMPETES Act to expedite funding for semiconductor production and innovation.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2022-06-16 - Filed with Secretary of State [AR141 Detail]
Download: New_Jersey-2022-AR141-Introduced.html
Sponsored by:
Assemblyman P. CHRISTOPHER TULLY
District 38 (Bergen and Passaic)
SYNOPSIS
Urges Congress to reconcile United States Innovation and Competition Act and American COMPETES Act to expedite funding for semiconductor production and innovation.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging Congress to reconcile the United States Innovation and Competition Act and the America COMPETES Act to expedite funding for semiconductor production and innovation.
Whereas, A semiconductor is a material that conducts electricity in variable ways, is used in computer chips, and is vital to the operation of thousands of electrical products, such as automobiles, computers, smartphones, gaming systems, and medical equipment; and
Whereas, The Semiconductor Industry Association asserts that the share of modern semiconductor manufacturing capacity located in the United States has decreased from 37 percent in 1990 to 12 percent today and that this decline is largely due to substantial manufacturing incentives offered by foreign governments, which places the United States at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities; and
Whereas, In recent years, global semiconductor supply chain vulnerabilities have emerged, leading to market shortages of automobiles and other electronic devices; and
Whereas, These supply chain vulnerabilities have revealed our reliance on foreign manufacturing of essential technology and should be eliminated through government investment in semiconductor production and innovation, which would strengthen our market security; and
Whereas, On January 1, 2021, the federal Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act) was enacted as part of the FY 2021 National Defense Authorization Act; and
Whereas, The CHIPS Act creates federal incentives for investment in facilities and equipment used for semiconductor fabrication, assembly, testing, advanced packaging, and research and development for the purpose of protecting supply chains, ensuring long-term national security, and bolstering international economic competitiveness; and
Whereas, The effectiveness of the CHIPS Act relies on Congress fully funding the provisions of the law, including enacting an investment tax credit, to support semiconductor production and innovation in this country; and
Whereas, On July 8, 2021, the United States Senate passed the United States Innovation and Competition Act of 2021 (USICA), which included $52 billion in federal investments for the CHIPS Act; and
Whereas, On February 4, 2022, the United States House of Representatives passed the America COMPETES Act of 2022 (COMPETES Act), which, like USICA, included $52 billion in federal investments for the CHIPS Act; and
Whereas, The Senate, upon receiving the COMPETES Act from the House, substituted the bill with the USICA, and passed it on March 28, 2022; and
Whereas, Although the USICA substitute was sent back to the House of Representatives for a final vote, Congress intends to convene a conference committee to reconcile the differences between the COMPETES Act and the USICA in order to finalize the version of the bill that will be sent to the President for enactment; and
Whereas, Governor Murphy has voiced his support of the USICA and has encouraged Congress to expedite the reconciliation of the bill; and
Whereas, United States Commerce Secretary Gina Raimondo specifically mentioned that the New Jersey Innovation and Technology Hub in New Brunswick, which will provide 550,000 square feet of space for medical learning, research, and innovation, would be a suitable potential site for semiconductor manufacturing; and
Whereas, New Jersey's Congressional delegation, who are integral in directing federal funds to this State, has also voiced support of the intent behind the COMPETES Act and the USICA; and
Whereas, New Jersey's economy would greatly benefit from federal investments in semiconductor manufacturing in this State and would strengthen the State's historical reputation as a leader in science and innovation; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully urges Congress to expedite the reconciliation of the COMPETES Act and the USICA to secure the country's supply chain, increase the country's global competitiveness, and establish this State as a leader in semiconductor production and innovation through the resulting federal investments.
2. Copies of the resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the President and Vice-President of the United States, the Majority and Minority Leaders of the United States Senate, the Speaker and Minority Leader of the United States House of Representatives, and every member of the Congressional delegation from the State of New Jersey.
STATEMENT
This bill respectfully urges Congress to expedite the reconciliation of the COMPETES Act and the USICA to secure the country's supply chain, increase the country's global competitiveness, and establish this State as a leader in semiconductor production and innovation through the resulting federal investments.
A semiconductor is a material that conducts electricity in variable ways, is used in computer chips, and is vital to the operation of thousands of electrical products, such as automobiles, computers, smartphones, gaming systems, and medical equipment. The Semiconductor Industry Association asserts that the share of modern semiconductor manufacturing capacity located in the United States has decreased from 37 percent in 1990 to 12 percent today and that this decline is largely due to substantial manufacturing incentives offered by foreign governments, which places the United States at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities. In recent years, global semiconductor supply chain vulnerabilities have emerged that have led to market shortages of automobiles and other electronic devices. These supply chain vulnerabilities have revealed our reliance on foreign manufacturing of essential technology and should be eliminated through government investment in semiconductor production and innovation, which would strengthen our market security.
On January 1, 2021, the federal Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act) was enacted as part of the FY 2021 National Defense Authorization Act. The CHIPS Act creates federal incentives for investment in facilities and equipment used for semiconductor fabrication, assembly, testing, advanced packaging, and research and development for the purpose of protecting supply chains, ensuring long-term national security, and bolstering international economic competitiveness. The effectiveness of the CHIPS Act relies on Congress fully funding the provisions of the law, including enacting an investment tax credit, to support semiconductor production and innovation in this country.
On July 8, 2021, the United States Senate passed the United States Innovation and Competition Act of 2021 (USICA), which included $52 billion in federal investments for the CHIPS Act. On February 4, 2022, the United States House of Representatives passed the America COMPETES Act of 2022 (COMPETES Act), which also included $52 billion in federal investments for the CHIPS Act. The Senate, upon receiving the COMPETES Act from the House, substituted the bill with the USICA, and passed it on March 28, 2022. Although the USICA substitute was sent back to the House of Representatives for a final vote, Congress intends to convene a conference committee to reconcile the differences between the COMPETES Act and the USICA in order to finalize the version of the bill that will be sent to the President for enactment.
Governor Murphy has voiced his support of the USICA and has encouraged Congress to expedite the reconciliation of the bill. United States Commerce Secretary Gina Raimondo specifically mentioned that the New Jersey Innovation and Technology Hub in New Brunswick, which will provide 550,000 square feet of space for medical learning, research, and innovation, would be a suitable potential site for semiconductor manufacturing. New Jersey's Congressional delegation, who are integral in directing federal funds to this State, has also voiced support of the intent behind the COMPETES Act and the USICA.
New Jersey's economy would greatly benefit from federal investments in semiconductor manufacturing in this State and would strengthen the State's historical reputation as a leader in science and innovation.
