Biden's semiconductor push has states jockeying for federal cash
The CHIPS legislation was designed to help bolster America’s supply chain when it came to the production of computer chips.
WASHINGTON — The global race to make next-generation computer chips has reached Nebraska — and dozens of other states, too.
In the coming months, the government plans to start doling out more than $50 billion for semiconductor manufacturing and research as part of the CHIPS and Science Act signed into law last year. The prospect of that much cash has sparked a scramble among states to pitch themselves as the best place to spark a semiconductor boom.
The CHIPS legislation was designed to help bolster America’s supply chain when it came to the production of computer chips used in everything from coffee makers and cars to pacemakers and missiles. While the measure was primarily centered on addressing national economic and security concerns about the lack of domestic manufacturing, it presents a windfall opportunity for state and local governments.
More than a dozen states have begun pulling together incentive packages with tax credits, zoning changes and cuts to regulatory red tape to lure the limited number of companies looking to expand their chip production in the U.S. States are scrambling, according to data from the Semiconductor Industry Association and interviews with industry leaders and officials.
“We haven’t had this kind of economic potential since corn,” said Nebraska state Sen. Mike McDonnell, who has introduced legislation to smooth the way for chip makers looking to expand in his state. “It’s a big idea and it’s something that can really help change the state of Nebraska.”
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