GOP congressional delegation wants chip law funded

GOP members of the Ohio congressional delegation Friday asked House and Senate leaders to fully fund a law meant to address a global shortage of semiconductor chips used in phones, cars and video games.

The request comes as multiple media reports say Santa Clara, California-based Intel Corp. intends to build a massive computer-chip factory near Columbus, the latest semiconductor company to announce expansion plans in the U.S.

The letter sent Friday urges top Congressional leaders to fully fund the $52 billion CHIPS for America Act, allowing for stateside investment in semiconductor factories. Not only has the chip shortage disrupted the U.S. economy, it is creating a vulnerability in the country’s defense system since eight of every 10 chips are produced in Asia, the letter said.

“These products are vital to U.S. technology deployment and are critical to U.S. national security,” the letter said.

“It is crucial that the United States leads in the research, development, and production of semiconductor technology.”

Separate federal legislation also under consideration would create a new tax credit for investment in semiconductor manufacturing facilities.

Chip shortages fueled by shutdowns during the pandemic have interrupted the production of new vehicles and electronic devices for more than a year.

“We are allowing ourselves to be held hostage by the imbalance of foreign chip production,” said GOP U.S. Rep. Troy Balderson, whose central Ohio district encompasses the proposed chip factory site.

“It’s past time to bolster this production here at home.”

Friday’s letter piggybacked on a similar request in November made to Ohio Congressional members by JobsOhio, the state’s privatized economic development office, Balderson said.

“Ohio has a unique opportunity to directly benefit from this legislative action by attracting generational investments from companies seeking to augment the domestic manufacturing of semiconductors,” that November letter said.

Both JobsOhio and Balderson’s office declined to comment on the Intel report.