Michigan is maneuvering to attract microchip manufacturers following a new bill that provides $52 billion in subsidies for domestic semiconductor production.
The bill, known as the “Chips and Science” act, is set to be signed by President Joe Biden next week. In addition to $52 billion in subsidies for U.S. chip production, the bill also includes investment tax credits for chip production facilities estimated at $24 billion. Last week, Senator Mark Warner said that the new bill will fund 10 to 15 new semiconductor factories.
“The state of Michigan is uniquely positioned,” said Michigan Governor Gretchen Whitmer in a recent interview with Reuters. “We want to make sure that our potential partners in this chips manufacturing moment are ready to move as fast as we are because we are going to have to move together.”
“If we had not done this, there would not be another American semiconductor manufacturing plant ever built in this country,” Whitmer added.
Early next week, the Michigan governor will sign an Executive Directive to position Michigan to compete for microchip manufacturing funding, with President Biden set to virtually attend the signing.
The move to bolster domestic microchip manufacturing arrives amid an ongoing global chip shortage that has had a profound effect on automobile production, including for General Motors. In order to keep production lines moving, GM has elected for a “build-shy” strategy wherein vehicles are produced in an incomplete state, then stored as additional microchips are sourced for completion. It’s estimated that GM currently has 90,000 unfinished vehicles waiting for new chips, while crosstown rival Ford has an estimated 18,000 unfinished vehicles waiting for new chips.
Interior of GM’s Arlington plant
GM has also taken steps to develop its own family of microchips to help offset potential chip-related production delays in the future. GM will purchase and control the new chips directly, as compared to the older model wherein GM allowed parts supply companies to acquire chips without GM’s prior knowledge. It’s estimated that the new GM chips will be locked in by 2025.
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Comments
Chips should definitely be made in the USA but not so sure about in Michigan, pick a state with a better labor situation.
Ya mean, like, one where workers get paid less?
Or where the tech smart is. Whats amusing is one company whose exec has been in the news just sold their 300mm fab to another competitor. At one time that site was one of the largest in the united states in the NE. Sad its all pretty much have been moth balled with a amazon wharehouse now being build on have the site!
Or where the gov’t takes less.
or they could have just left the one the trucks are parked at now open. but shortsightedness with regard to profit over time destroyed that
That money will go into the wrong pockets. It’s like giving money to a Pimp, Afghanistan, or the green steal deal to assume Afganistan is going to win, the world ends in 7 years, and the pimp is going give his workers a raise…lol
IMO, bad deal to help an industry that has great revenues to do their job…typical gov’t decision…
Chip manufacturing takes a large highly skill work force and that type of worker does not come cheap especially when demand exceeds supply of college trained workers. Companies that look to relocate or expand business they look for a source of educational workers and sites near universities take notice. Article states enough money for 14 factories. Hopefully that means 14 different states.
Chip manufacturing does not require highly skilled workforce. Large portion of the manufacturing workforce require specific training regarding their job, but do not require engineering degrees. Established chip makers already have engineering staff for design and engineering, so they just need a motivated population.
The US hasn’t made chips for some time. So where ever the companies go, they’ll have to set up training as well.
GM should be using their previous chip site build location. The “old” Delco Radio plant in Kokomo. Indiana. That location already has a highly educated and trained work force. Plus, Purdue Univ. is in the neighborhood. GM building chips oriented toward automotive needs could help defray costs by greater volume in selling to Ford and other domestic builders.