USTR Katherine Tai Addresses USW Convention

During her 18-minute speech, Tai discussed various planned initiatives to promote fair trade and worker protections, including the newly signed CHIPS Act. She mentioned that future infrastructure projects will be built with American steel, and highlighted the two chip factories that Intel is building in Ohio as well as a $40 billion investment that US-based semiconductor company Micron is making.

“Yesterday, I was with President Biden when he signed the CHIPS Act into law. The pandemic exposed serious flaws in our supply chains, particularly our dependence on certain regions, like China, for essential materials. This law makes our country more resilient. The chip shortage creates problems for all of us—longer waits to get dishwashers and cars. And they’re more expensive. This law will help fix those problems. And not only that, it will support construction of new factories at home, made with American steel,” stated Tai. 

According to Whitehouse.gov, “The CHIPS and Science Act provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development. This includes $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems, $13.2 billion in R&D and workforce development, and $500 million to provide for international information communications technology security and semiconductor supply chain activities. It also provides a 25% investment tax credit for capital expenses for manufacturing of semiconductors and related equipment.”

Additionally, “The bill requires recipients to demonstrate significant worker and community investments, including opportunities for small businesses and disadvantaged communities, ensuring semiconductor incentives support equitable economic growth and development.” More information can be found here.

In addition to the Intel and Micron growth, semiconductor manufacturer GlobalFoundries is expanding its upstate New York facility to accommodate Qualcomm’s manufacturing expansion.

US Vice President Kamala Harris also addressed the USW Convention this week, praising the steelworkers for the work they do. “Everyone benefits from that work, because when union wages are up, everybody’s wages go up; when union workplaces are safer, all workplaces are safer; and when unions are strong, America is strong,” she said in her speech, to great applause from the audience.

Harris also commented that the CHIPS Act will boost domestic semiconductor production and in turn, domestic automotive manufacturing as well. With Steelworkers one of the largest unions in the automotive supply chain, “this work will mean more jobs, more job security, and better pay,” she said.

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By Becca Moczygemba, Becca@SteelMarketUpdate.com