Press Release

Rep. Cuellar Votes to Boost American Manufacturing, Science, and Innovation

Semiconductor Chips Are Integral To Everyday Life: From Cars To Refrigerators. But Most Are Not Made In The U.S. Threatening National Security, Worsening Inflation and Increasing Costs For Families, & Weakening U.S. Competitiveness Texas will score jobs and a boom to economy with passage of CHIPS Legislation

Washington | Dana Youngentob, DC Press Secretary (202-340-9148), July 28, 2022

Washington, DC–Today, U.S. Congressman Henry Cuellar (TX-28) voted for H.R. 4346, The CHIPS and Science Act. This legislation makes historic investments to surge production of American-made semiconductors, tackle supply chain vulnerabilities, bolster America’s scientific research and technological leadership, and strengthen America’s economic and national security. The legislation will positively impact Texas with jobs and an economic boom.

“Today, I voted to usher in a bold future for American science and innovation,” said Congressman Cuellar. “Semiconductors power our cellphones, microwaves, cars, and so much more. With today’s vote, we are ensuring this vital technology is made right here at home. This legislation will provide major support for Texas MEP to shore up our domestic STEM workforce and revitalize support for our premier research institutions. Thank you to my colleagues, on both sides of the aisle, for prioritizing American jobs and American manufacturing. I am proud of Congress for coming together to pass this historic legislation, and look forward to it being enacted into law.”

The Texas Manufacturing Network will surge with this legislation. Currently, Texas manufacturers create and retain more than 70,000 jobs, save consumers $2.4 billion and have $7.8 billion in sales. These number are only likely to increase with the passage of CHIPS.

Currently, only 12% of chips are manufactured domestically, compared to 37% in the 1990s. Many foreign competitors, including China, are investing heavily to dominate the industry. Nearly 75% of global semiconductor production is now occurring in East Asia and foreign government subsidies drive the majority of the cost difference for producing semiconductors overseas. This legislation would help turn the tide on this trend by bringing manufacturing back to America, along with investing in other key technology and R&D so Texas and the United States can lead the world in innovation.

Specifically, the legislation incudes:

  • $39 billion for the CHIPS for America Fund to provide federal incentives to build, expand, or modernize domestic facilities and equipment for semiconductor fabrication, assembly, testing, advanced packaging, or research and development.
  • $11 billion for Department of Commerce research and development including creating a National Semiconductor Technology Center (NSTC) a public-private partnership to conduct advanced semiconductor manufacturing.
  • $2 billion for the DoD CHIPS for America Defense Fund.
  • $200 million for the CHIPS for America Workforce and Education Fund to kick start development of the domestic semiconductor workforce, which faces near-term labor shortages, by leveraging activities of the National Science Foundation.
  • A new Investment Tax Credit for semiconductor manufacturing facilities and equipment.
  • $10 billion Regional Technology Hubs to support regional economic development efforts around the country to not only research and innovate technologies, but also manufacture them here in America.
  • $1.5 billion for the Public Wireless Supply Chain Innovation Fund to spur the race to 5G, software-based wireless technologies, and innovative ‘leap-ahead’ technologies in the U.S. mobile broadband market. 
  • Increased investment for National Science Foundation (NSF) Research and Development Programs.
  • $13 billion to build the STEM workforce. Authorizes funding for STEM education, including scholarships, fellowships, and traineeships to create workers in critical fields, including to establishing an artificial intelligence scholarship-for-service program, a national network for microelectronics education, and cybersecurity workforce development programs. 
  • $2 billion to strengthen small manufacturers. Triples funding for Manufacturing Extension Partnership, to support small- and medium-sized manufacturers with cybersecurity, workforce training, and supply chain resiliency.
  • New investment to combat Supply Chain Disruption. Leverages the Manufacturing Extension Partnership to creates a National Supply Chain Database, to assist the businesses with supplier scouting and minimizing supply chain disruptions.
  • Over $800 million to grow Manufacturing USA. Supports the creation of new competitively-awarded manufacturing research institutes with expanded capacity for education and workforce development.
  • Infusion of new funds for the Department of Energy National Labs like Brookhaven National Lab. Funds will advance research and development, including in key technology areas like quantum computing, artificial intelligence (AI), and more.