WASHINGTON (Diya TV) — President Biden signed into law on Wednesday legislation that exempts some U.S. facilities that manufacture semiconductors from federal environmental reviews, if they receive government subsidies under the CHIPS Act. The new law is expected to help speed up the construction of chip plants as part of the Biden administration’s broader push to strengthen U.S. leadership in semiconductor production while reducing reliance on foreign supply chains.
Legislation passed Congress on bipartisan grounds to streamline the permitting process for recipients of $52 billion in subsidies distributed under the CHIPS and Science Act of 2022 toward semiconductor manufacturers. Advocates for the new law claim the measure is necessary to speed domestic production of critical semiconductors-not just essential chips that run everything from smartphones to cars to military equipment, but also those tiny components that power tools and irrigation systems, for example.
“Semiconductors are the backbone of modern technology and America can ill afford to fall behind in that key sector,” Biden said in a statement. “By cutting unnecessary red tape, we are helping ensure that the U.S. remains a global leader in innovation, manufacturing and national security.”
The CHIPS Act responds to the global semiconductor shortage that has disrupted global supply chains during the pandemic and underscored how dependent the United States is on foreign manufacturers in Asia. The Biden administration has set a national priority to boost domestic semiconductor production, citing its importance in advancing economic security and technological competitiveness for the United States.
However, the new exemption of environmental reviews in the deregulatory bill has drawn wide criticism from environmental and watchdog groups that claim that exclusion of critical safeguards weakens potentially impactful loopholes. Such action through exemptions might result in negative impacts on communities and ecosystems near chip manufacturing plants.
“There is a risk that the impulse to construct these facilities will be a recipe for disaster,” said Gina McCarthy, a former White House national climate advisor. “We need to balance economic growth with our environment.”
Supporters of the measure note that semiconductor manufacturing facilities are, as a rule, less hazardous in environmental terms than other kinds of industrial development, and argue that benefits to the nation resulting from increased domestic production outweigh risks. Chip plants will also remain subject to state-level environmental regulation and oversight.
The bill should also be positive for those companies such as Intel, Micron, and TSMC that have already announced major chip manufacturing plans in states like Arizona, Ohio, and Texas. These projects form part of the larger plan to ensure the semiconductor manufacturing is brought back to the US and reduce the country’s reliance on imports from countries such as Taiwan and South Korea.
As semiconductor demand is constantly increasing across the globe, the Biden administration is optimistic about this new legislation helping strengthen its country’s position in this critical industry.
