Sen. Ted Cruz (R-Texas) in the U.S. Senate on September 25, 2024 (Photo by Miguel Ambriz/Cronkite News)
WASHINGTON – In election years, cooperation between Republicans and Democrats tends to be rare.
But this week, Sens. Mark Kelly and Ted Cruz, Democrats from Arizona and Republicans from Texas, teamed up to push through a measure that would cut through the red tape that slows new U.S. semiconductor factories.
Chip manufacturing is a major industry in both states. Lawmakers of both parties view building domestic capacity as a national security issue, as do President Joe Biden and former President Donald Trump.
“By streamlining the process, factories can go into production more quickly without barriers. This is a national security issue, and it’s a well-paying job that allows you to support your family without a college education.” Kelly said in an interview on Capitol Hill.
The Build America Chips Act is now on Biden’s desk, proving that bipartisan politics is still possible under the right conditions. The president is expected to sign the bill despite opposition from environmentalists.
The Senate unanimously approved the bill in December. After that, it became stagnant.
“It was blocked by Congress, and Mark and I have worked closely together to get it across the finish line,” Cruz said in a brief interview Wednesday at the Capitol.
The logjam finally cleared on Monday, when the bill passed the House by a vote of 257 to 125. Less than half of Democrats and nearly all Republicans supported it.
“We went to a lot of people,” Kelly said. “For the past few days, I’ve been on the phone with House Democrats trying to get all the votes for this bill.”
Official portrait of Senator Mark Kelly
The Kelly-Cruz bill would streamline and speed up the environmental reviews required for semiconductor projects.
Biden signed the Creating Incentives for Semiconductor Manufacturing (CHIPS) and Science Act in August 2022.
By then, the U.S. share of global microchip manufacturing had fallen to 12% from 60% in 1990, according to the Council on Foreign Relations. Taiwan accounted for 60% of the market and supplied 90% of the most advanced chips.
The CHIPS Act provided $53 billion for domestic semiconductor research and manufacturing.
Arizona has become a magnet for the industry.
Intel and Taiwan Semiconductor Manufacturing Company (TSMC) have two of the nation’s largest semiconductor manufacturing facilities in Arizona, and each is seeking billions of dollars to expand production in the state under the CHIPS Act. Receives US dollar subsidies and loans.
Semiconductors are essential to modern electronics, from phones to medical devices to automobiles and robotics. The Semiconductor Industry Association predicts U.S. growth of 203% by 2032.
Mr. Cruz is in the midst of a fierce election campaign for a third term. His opponent, Rep. Colin Allred, a Dallas Democrat and former NFL player, has run ads attacking him for opposing the original CHIPS Act and taking credit for its accomplishments.
Cruz said he voted against the bill because of its provisions that would give billions of dollars to private companies. He supported tax breaks for semiconductor projects.
Arizona Sen. Kyrsten Sinema (an independent) was one of the co-sponsors of the Kelly Cruz bill.
“To maintain global competitiveness in semiconductor manufacturing, we must eliminate red tape to expedite the completion of critical facilities and projects,” she said in a statement. “We are thrilled that our bipartisan bill has passed the U.S. House of Representatives.”
Four Republicans and one Democrat from Arizona voted in favor of the Kelly Cruz bill in the House. Rep. Paul Gosar (R-Bullhead City) opposed it. The other three people were absent.
“We want a bipartisan bill. That’s the best way to get things done,” Kelly said. “We’re always looking for opportunities.”
