Brown Has Been a Leader in Pushing Semiconductor Legislation Through the Senate; Legislation Will Support Ohio’s Auto Industry, High-Tech Manufacturing, Other Industries

WASHINGTON, D.C. – Today, the U.S. Senate passed a legislative package that includes the CHIPS Act of 2022, which includes historic funding for domestic semiconductor manufacturing as well as a Science Title with funding for essential priorities for Ohio’s economy. U.S. Senator Sherrod Brown (D-OH) has been instrumental in moving the legislation through the Senate. The CHIPS Act will support and grow domestic supply chains, invest in Ohio manufacturing jobs, and reduce costs for Americans by reversing decades of offshoring American manufacturing. Currently, 90 percent of chip manufacturing capacity is overseas, but with investments in domestic manufacturing – like Intel’s investment in a semiconductor plant in New Albany – chips will become a major American export out of Ohio. The Cleveland.com and the Plain Dealer Editorial Board have applauded Brown’s bipartisan work to craft legislation to support investments in Ohio manufacturing. The package now heads to the House for consideration.

“By investing in Ohio’s manufacturing, research and higher education, the CHIPS Act will restore critical supply chains, help lower costs for Ohioans, and create thousands of good-paying jobs,” said Brown. “This is a first step toward ending decades of corporate offshoring of our supply chains that cost Ohio jobs and now is costing everyone by causing inflation. We are putting another nail in the coffin for the term ‘Rust Belt’ – and we’re just getting started.”

In January, Intel announced a $20 billion investment to build a semiconductor plant in New Albany, which is expected to create 10,000 jobs. The CHIPS Act will boost Intel’s initial investment to create thousands of additional jobs in Ohio. It will also support critical Ohio industries, like the auto industry and other high-tech manufacturing. Brown worked with local and state leaders and other members of Ohio’s Congressional delegation to ensure that Intel chose Ohio for what will be its most advanced manufacturing facility in the world. Brown also applauded Intel’s announcement to invest $50 million in Ohio higher education initiatives targeting the semiconductor industry. Intel’s announcement is in partnership with the U.S. National Science Foundation, which will provide an additional $50 million for research grants nationally that will be available to Ohio institutions.

“We congratulate the Senate's bipartisan vote today to fund the CHIPS Act and urge the House to follow suit. We will move forward together to advance American leadership in semiconductor manufacturing and R&D, and strengthen American national and economic security. We thank Senators Brown and Portman for their leadership on this important issue and are excited to be one step closer to start building in Ohio,” said Pat Gelsinger, Intel CEO.

“Ohio’s economy stands to benefit even more from the transformational nature of Intel’s investment in semiconductor manufacturing in our state thanks to the CHIPS Act, which will bolster American manufacturing and national security. We want to thank the members of Ohio’s Congressional delegation who have been working hard to see this through, especially Senators Brown and Portman, for their leadership on this important issue,” said Steve Stivers, President and CEO of the Ohio Chamber of Commerce.

“As America's No. 1 vehicle manufacturer, assembling more vehicles and employing more hourly workers in the U.S. than any other automaker, Ford applauds the Senate for its bipartisan passage of the CHIPS Act. This legislation will empower the United States to lead in the global transition to electric and connected vehicles and alleviate supply constraints caused by the global shortage of legacy semiconductor chips our industry needs.  Ford has announced nearly $14 billion in U.S. EV and battery investments in the last year alone, and CHIPS will help make those manufacturing lines hum with exciting vehicles our customers love,” said Steven Croley, Chief Policy Officer and General Counsel, Ford Motor Company.

“Investment in the domestic semiconductor industry is critical to keeping our nation strong and competitive,” said Ohio State President Kristina M. Johnson. “This bill recognizes the importance of realizing that goal by making strategic investments in research and development, overcoming supply chain challenges, and cultivating the workforce of the future. Ohio State is deeply committed to playing a key role in economic growth both locally – particularly related to the Silicon Heartland initiative – and across the U.S., and we are grateful to Senator Brown for his support,” said Dr. Kristina M. Johnson, President, The Ohio State University.

“We applaud the U.S. Senate and the leadership of Senator Sherrod Brown in securing passage of the CHIPS Act to drive domestic semiconductor production, ensuring access to current and future critical technologies that increase our economic and national security. This bill is a win for Ohio workers and our local communities that will see massive job creation while driving down inflation.  CHIPS funding is a needed first step in the pursuit of overdue policies that make the U.S. more competitive with trading partners like China that refuse to play by the rules,” said Tim Burga, President, Ohio AFL-CIO.

“On behalf of myself, President Mark Douglas, our Executive Board and the 100,000 men and women who work in union construction every day in Ohio we want to take this time to applaud the efforts from Senator Brown on his ability to help get the CHIP’s Bill passed in the Senate. This legislature impacts not only the State of Ohio with the $100 billion investment for semiconductor manufacturing but helps with bringing this much needed industry back to the United States, lowering inflation as well as lessening our dependence from foreign advisories to produce these microchips. Senator Brown continues to get things done in Washington whether it be Infrastructure, Pension Reform and other meaningful legislation that affect all of us. We would be remiss not to thank the members of the US Senate for working together for the betterment of not only Ohio but for the United States as well – job well done,” said Mike Knisley, Executive Secretary and Treasurer, Ohio State Building and Construction Trades Council.

“We are very excited to see the CHIPS + Science bill pass today. This will enable America Makes, based in Youngstown, OH, to expand its mission of convening, coordinating, and catalyzing the additive manufacturing industry. This bill symbolizes an investment in advanced manufacturing technologies that will support family sustaining careers in the Ohio and across the United States in fields like additive manufacturing and 3D printing,” said John Wilczynski, Executive Director, America Makes.

“NASA Glenn and the Birthplace of Aviation are among the nation’s strongest supporters of the agency’s efforts to drive innovation on Earth and extend human presence from low-Earth orbit to the Moon, Mars, and beyond. The support from Congress ensures our research and development efforts at Glenn remain critical to the state and national economy, while supporting a diverse, highly-skilled STEM workforce and inspiring the world to follow along our journey to explore the unknown in air and space,” said Dr. Jimmy Kenyon, acting director of NASA Glenn.

"Passage of the CHIPs Act means more Ohio students will gain access to family-sustaining jobs and great career opportunities even faster. These investments will give Columbus State and other Ohio community colleges the opportunity to build relationships deep in our communities, deepen partnerships with K12 districts and universities, and create a statewide ecosystem of talent that is second to none. Intel's focus on building a diverse team and ensuring equitable access to high-growth careers is directly aligned with Columbus State's mission. This is a transformational moment,” said David Harrison, President, Columbus State Community College.

“The University of Cincinnati applauds Senator Brown’s leadership in securing passage of the CHIPS+ Science bill. As a leader in research and workforce development, the University of Cincinnati strongly supports the bill's provisions and applauds the Senate’s bipartisan effort to get this important legislation signed into law. The vital support for semiconductor manufacturing and research included in the legislation will enable new opportunities across Ohio. The additional provisions for federal science agencies will provide new opportunities for transformational use-inspired basic research, regional innovation, and new work-integrated education opportunities,” said Neville G. Pinto, President, University of Cincinnati.

“Federal funding to jumpstart American semiconductor manufacturing is a huge win for Ohio and the Dayton region. We expect passage of the measure to boost jobs for semiconductor suppliers in the region, enhance national security, and create spinoff benefits supporting Wright-Patterson Air Force Base,” said Jeff Hoagland, President and CEO, Dayton Development Coalition.

“Today’s passage of the CHIPS Act by the U.S. Senate is a monumental win for Ohio and our country. Intel Corporation is laying the groundwork for the United States to return as a manufacturing superpower for semiconductors, and the CHIPS Act is a pivotal component for making that happen. Producing computer chips domestically is critical for so many sectors of our economy—military readiness, electrical grid infrastructure and much more—but it is also imperative for our national security as it will decrease our dependence on trade with China. I applaud Senator Brown’s leadership and for working with a bipartisan group of Senators to get the CHIPS Act across the finish line in the Senate. I urge the House to take swift action to get the legislation to the President’s desk as soon as possible,” said Pat Tiberi, President and CEO of the Ohio Business Roundtable and former member of Congress.

"Sen. Brown clearly recognizes the generational opportunity we have to grow the economy in the Mahoning Valley and throughout Ohio. The CHIPS Act provides us with the best tools at the best time to attract significant investment, giving our brightest people fantastic career opportunities for many years to come,” said Guy Coviello, President & CEO, Youngstown Chamber of Commerce.

“The CHIPS Act for America is good for workers, our national security, and economy. It would improve U.S. manufacturing competitiveness and help ensure we do not have future shortages that sideline the sales of cars, trucks, agricultural and construction equipment, many of which are built by UAW members.  I thank Senator Brown for championing this important bill and his tireless advocacy on behalf of working families.  We urge the House to quickly pass this legislation and send it to President Biden’s desk so it can become the law of the land,” said UAW President Ray Curry.

“We applaud the Senate’s passage of this critically important legislation to provide much needed funding to the CHIPS Act. Our nation is now one step closer to restoring domestic semiconductor manufacturing leadership and establishing a more resilient and robust semiconductor supply chain. Ohio businesses, workers, and communities will uniquely benefit from this legislation, and our economy will grow because of it. We recognize and appreciate the bipartisan collaboration that went into this effort and thank all those involved,” said Steve Millard, President & CEO, Greater Akron Chamber and Chair, Ohio Metro Chambers Coalition.

“Fully funding the CHIPS Act is vital for America’s economic competitiveness and national security. The CHIPS Act will accelerate the pace and amplify the impact of Intel’s investment in Ohio, creating the Silicon Heartland - empowering Ohio to become a leader in attracting semiconductor industry investment. In true Ohio spirit, Senator Brown and Ohio’s bipartisan Congressional Delegation have aggressively supported the CHIPS Act - we are thrilled with today’s progress and urge speedy passage in the US House,” said J.P. Nauseef, President and CEO, JobsOhio.

“I commend the U.S. Senate’s passage of the CHIPS Act today and applaud Ohio Senators Sherrod Brown and Rob Portman for their hard work to advance this important legislation.  Reshoring production of microchips is integral to the continued resurgence of American manufacturing and to the electrification of America’s vehicle fleet.  Cleveland-Cliffs, as the largest supplier of automotive steel in North America, is on the cutting edge of developing and supplying steel products needed for vehicle electrification.  Accordingly, we fully support the CHIPS Act and urge immediate passage of this important legislation by the U.S. House of Representatives,” said Lourenco Goncalves, Chairman, President, and CEO of Cleveland-Cliffs.

“The passage of this important legislation will change thousands of lives for the better here in Ohio. It will help to create great jobs, launch careers, bring investment to our communities and continue to build confidence that in America we can accomplish great things by working together. Senator Brown’s steadfast commitment to American manufacturing is deeply appreciated,” said Kenny McDonald, President and CEO of the Columbus Partnership.

“We are extremely grateful for Senate passage of the CHIPS Plus Act.  This legislation is critical for Greater Cleveland and all of Ohio.  It will spur greater investment and innovation in key technologies and sectors that power our region and enhance national competitiveness.  The bill also contains key policy authorizations that advance key initiatives at NASA Glenn Research Center.  We are thankful to our Senators for their leadership and support of this act,” Baiju Shah, President and CEO of Greater Cleveland Partnership.

“The Ohio Aerospace Institute working with NASA leads in the development of next generation microelectronics which operate in high temperature environments such as jet engine controls and cameras for the surface of Venus. The passage of this legislation brings together two synergistic elements critical to the nation and enabled by Ohio, microchips and aerospace.”  Dr. John M. Sankovic, President and CEO, Ohio Aerospace Institute.

“The Cincinnati USA Regional Chamber commends the Senate’s affirmative vote to pass CHIPS-Plus and provide funding for investments in semiconductor chip manufacturing and American innovation.  The legislation is profoundly important to our region’s competitiveness, and more specifically, it will move the Ohio Intel project forward.  Because of that, our state and our region stand ready to see a direct economic impact from this legislation, in the form of new jobs, population growth, and economic activity. This is another example of how bipartisan leadership can create meaningful solutions for the Cincinnati region’s economy,” said Katie Eagan, Vice President of Government Affairs, Cincinnati Chamber of Commerce.

Brown has pushed for swift passage of the CHIPS Act, which is key to supporting investments in Ohio manufacturing. Specifically, the CHIPS Act will:

-Provide $52.7 billion for the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America fund:
        -The CHIPS Act will provide $52.7 billion to expand domestic semiconductor manufacturing, research and development, and workforce development. This will invest in companies like Intel that build chips fabs in the United States, allowing them to break ground and expand production of their investment in Licking.

-The CHIPS for America fund will provide $200 million over five years for the National Science Foundation (NSF) to promote growth of the semiconductor workforce, which faces the need to add 90,000 workers by 2025. Some of this funding will help grow the semiconductor workforce in Ohio.

-The CHIPS for America Fund will also provide more than $11 billion to Department of Commerce research and development initiatives in the semiconductor industry, including funding for Manufacturing USA Semiconductor Institutes. This funding will support partnerships between government, industry, and academia to conduct advanced semiconductor manufacturing research and development, invest in new technologies, and expand workforce training and development opportunities.

-Provide $2 billion to focus solely on legacy chip production to advance economic and national security interests:
        -These chips are essential to the auto industry, the military, and other critical industries. It will translate into more legacy chips for Ford, Jeep, Honda, GM, and other companies in Ohio.

-Provide more than $11 billion to Department of Commerce research and development initiatives in the semiconductor industry, including funding for Manufacturing USA Semiconductor Institutes:
       - A partnership between government, industry, and academia to research virtualization of semiconductor machinery, development of Assembly, Testing, and Packaging (ATP) capabilities, and the development and deployment of training.

-Provide $200 million for a Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Workforce and Education Fund:
        -$200 million is over five years for the National Science Foundation to promote growth of the semiconductor workforce, which faces the need to add 90,000 workers by 2025. Some of this funding will help grow the semiconductor workforce in Ohio.

-Clarify that upstream suppliers are eligible to receive CHIPS funding:
        -Suppliers are essential to building strong domestic semiconductor manufacturing ecosystems.

-Require that all construction projects funded under the CHIPS Act are subject to prevailing wage requirements, which will ensure that the Ohio Building Trades will build the fabs in central Ohio.

-Require the Department of Commerce to establish activities and assign personnel to ensure that the recipients of CHIPS manufacturing incentives meet their commitments to increase the participation of economically disadvantaged individuals in the semiconductor workforce:
        -Such personnel would also serve as a resource to support the participation of minority-owned businesses, veteran-owned businesses, and women-owned businesses, in CHIPS-funded projects. This will ensure that CHIPS funded projects in Ohio serve a diverse constituency across the state and lead to broad based prosperity of Ohioans from underrepresented backgrounds.

Along with the funding for domestic semiconductor manufacturing, the Science Title provides funding for advanced industries in other fields.

Creating Jobs and Supporting Workers:

Manufacturing USA program. The Science Title appropriates a historic $829 million for the Manufacturing USA program over the next five years, the largest increase in funding for the program since its inception. Brown codified the Manufacturing USA program into law through his bipartisan 2014 legislation, the Revitalize American Manufacturing and Innovation Act, which created a network of 15 manufacturing innovation hubs around the country. Youngstown’s “America Makes,” was the nation’s first manufacturing and innovation hub, and served as inspiration for Brown’s legislation. America Makes was created when President Obama directed the Department of Defense to create it in 2012.

Hollings Manufacturing Extension Partnership (MEP). The Science Title also appropriates a historic $2.23 billion for the Hollings Manufacturing Extension Partnership (MEP) over the next five years, the largest increase in funding for the program since its inception. Brown has been a strong supporter of the MEP through Ohio Manufacturing Extension Partnership Program, which provides approximately $5 million a year to Ohio’s MEP centers.

Ohio’s MEP partners have locations across the state, including: Columbus State Community College (Columbus), Manufacturing Advocacy and Growth Network (MAGNET, Cleveland), Center for Innovative Food Technology (CIFT, Toledo), OSU South Centers (Piketon), TechSolve (Cincinnati), and FASTLANE (University of Dayton Research Institute, Dayton).

The inclusion of labor perspectives and labor stakeholders in the National Science Foundation (NSF) Technology Directorate and its programs, NSF Regional Innovation Hubs, and the NSF test bed grant program.

Regional Clean Energy Innovation Program. The Science Title authorizes a Regional Clean Energy Innovation Program at the Department of Energy (DOE) to establish regional partnerships that promote the economic development of diverse geographic areas of the United States by supporting clean energy innovation. Awards are capped at $10 million over 5 years and requires a cost-share of 50 percent in years 3, 4, and 5, of the grant, with an optional renewal for an additional 5 years. This section also authorizes grants in the amount of $2 million for government entities, in partnership with other entities, to conduct planning activities to set up a regional clean energy innovation partnership.

National clean energy incubator program. The Science Title authorizes a program to support incubators that accelerate the commercial application of clean energy technologies by providing a physical workspace or support, such as business education and mentorship to clean energy technology startups or companies. Awards authorized under this section are limited to $4 million per state for one or more incubators, for a period of no longer than 5 years, with the option for a renewal of not more than 3 years. It authorizes $15,000,000 for each of fiscal years 2023 through 2027.

Funding for Education and Research:

The Science Title also appropriates a $81 billion for the National Science Foundation (NSF) over the next five years. Brown has been a strong supporter of the NSF, cosponsoring the Supporting Early Career Researchers Act to establish a two-year pilot program at NSF to award grants to highly qualified, early-career investigators at independent, higher education research institutions for up to two years, helping to prevent research talent loss due to job market disruptions caused by the pandemic. The NSF funding from the Science Title will:

-Increase support for basic research. Fundamental research accounts for the bulk of NSF investment in Ohio (over $185 million in Fiscal Year 2021).

-Build the STEM workforce. Academic institutions across the state run NSF programs that broaden participation in STEM. For example:
        -Ohio University’s NSF Research Experiences for Undergraduates (REU) provides an intensive summer program for students interested in treatment-related research for children with social, emotional, and behavioral problems;
        -Columbus State Community College’s Future Tech Scholars program increases the recruitment and retention of low-income, academically talented students pursuing associate degrees in information science technology; and
        -Ohio State University’s two Artificial Intelligence Institutes develop a new generation of AI scientists and establish U.S. leadership in next-generation edge networks and distributed AI.

Expand rural STEM education. The Science Title provides NSF funding for research and development to increase access to STEM education opportunities in rural schools. More than a quarter of Ohio’s population is classified as rural.

Advanced nuclear research infrastructure enhancement subprogram. The Science Title amends the Energy Policy Act of 2005 to establish a new university infrastructure subprogram that will further the development of advanced nuclear technologies including by establishing not more than four new research reactors and new nuclear science and engineering facilities. Authorizes a total of $390M over fiscal years 2023 through 2027 for these activities.

Low-emissions steel manufacturing research program. The Science Title authorizes a DOE research, development, demonstration, and commercial application program of advanced tools, technologies, and methods for low-emissions steel manufacturing, focusing on several key technology areas, including heat generation, carbon capture, smart manufacturing, resource efficiency, alternative materials, and high-performance computing. This section also directs the Secretary to support an initiative for the demonstration of low-emissions steel manufacturing in collaboration with industry partners, institutions of higher education, and the National Laboratories, and to consider leveraging the resources of the Manufacturing USA Institutes.

Carbon Materials Research Initiative. The Science title establishes a research initiative to expand fundamental knowledge of coal, coal-wastes, and carbon ore chemistry which includes a basic research program and the establishment of a research center in each of the two major coal-producing regions of the United States.

Wins for NASA:

The Science title also includes the National Aeronautics and Space Administration (NASA) Authorization. Brown has led efforts to increase funding for Ohio’s research and test facilities to ensure they have the resources to continue to lead America’s aerospace industry. He recently met with NASA Administrator Bill Nelson to discuss Ohio’s leadership in space innovation and the areas of excellence where NASA Glenn Research Center in Cleveland is prepared to lead. The NASA Authorization from the Science Title will:

Authorize the Artemis Moon Program. Authorizes the Moon-to-Mars Exploration Campaign, including the Artemis program that will land the first woman and person of color on the Moon.

Maintain the International Space Station (ISS). Extends authorization for the International Space Station through 2030; NASA Glenn developed the station’s electrical power system and leads NASA’s Physical Sciences research program at the ISS.

Advance U.S. Aeronautics Leadership. Requires NASA to continue research efforts in aeronautics; NASA Glenn’s work advances innovative aircraft propulsion that will reduce the environmental impact of commercial air travel.

Enhance NASA Technology, Infrastructure, and Workforce. Directs NASA to invest in testing infrastructure and capabilities, supports space nuclear power and propulsion research. Glenn is a leader in spacecraft testing and space nuclear power for the Agency.

Support NASA’s Universal Stage Adapter (USA). NASA’s Space Launch System (SLS) is the agency’s new super heavy lift rocket that will take astronauts to the Moon; when the Exploration Upper Stage used for future configurations, NASA Glenn’s Universal Stage Adapter (USA) will connect the rocket to the Orion crew module.