In a significant move to bolster the United States’ semiconductor industry, President Joe Biden signed legislation on Wednesday that exempts certain U.S. semiconductor manufacturing facilities from federal environmental reviews. This law aims to accelerate the development of semiconductor plants funded under the $52.7 billion CHIPS Act of 2022 by removing potential regulatory hurdles.
Prior to this legislation, projects receiving government subsidies under the CHIPS Act could have faced extensive federal environmental reviews mandated by the National Environmental Policy Act (NEPA) of 1969. These reviews, while important for environmental protection, could have led to years of delays for critical semiconductor manufacturing projects that had already complied with existing federal, state, and local environmental regulations.
The exemption is seen as a strategic effort to enhance the U.S. position in the global semiconductor market amidst increasing demand and competition. The U.S. Commerce Department has allocated over $35 billion to 26 projects, including substantial grants to major industry players. Among the beneficiaries are South Korea’s Samsung, which is expanding chip production in Texas with $6.4 billion in grants, Intel with $8.5 billion, Taiwan’s TSMC investing in American production with $6.6 billion, and Micron Technology receiving $6.1 billion for U.S. factory developments.
Supporters of the legislation argue that streamlining the permitting process is essential for maintaining the momentum of bringing semiconductor manufacturing back to the United States. Senator Mark Kelly, a co-author of the bipartisan bill, stated, “By preventing unnecessary delays in the construction of microchip manufacturing facilities, this bill will help maximize our efforts to bring this industry back to America, creating thousands of good-paying jobs and strengthening our supply chains.”
However, environmental groups have expressed concerns over the exemption. Organizations like the Sierra Club emphasize the importance of thorough environmental reviews to protect communities and workers from hazardous contaminants used in the semiconductor industry. U.S. Representative Zoe Lofgren criticized the bill, highlighting that areas like California have previously suffered from pollution due to semiconductor manufacturing. She advocates for the continued use of NEPA reviews as a vital tool to prevent repeating past environmental mistakes.
Senator Ted Cruz, who also co-authored the legislation, emphasized the importance of strengthening domestic semiconductor production for national security reasons. He views the effort to streamline permits as a crucial step in onshoring jobs and bolstering the U.S. technology sector.
The Semiconductor Industry Association had warned that without this legislative change, ongoing projects could face significant slowdowns or halts, impacting the United States’ competitiveness in the global market. The White House assured that it will “continue to uphold our commitment to ensuring that semiconductor projects are built and operated in a way that meets clean water, clean air, endangered species, and other federal requirements and minimizes risks and impacts to workers, public health, and the environment.”
This development marks a pivotal moment in the U.S. government’s efforts to revitalize domestic semiconductor manufacturing, aiming to secure supply chains and foster innovation within the country. As the industry progresses, balancing rapid development with environmental stewardship remains a critical focus for all stakeholders involved.
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Biden exempts some semiconductor factories from environmental reviews
cgtn.com
