business backgrounder | federal focus
A Reboot for Manufacturing
The CHIPS and Science Act promises major benefits for Washington
Richard S . Davis
At A Glance
President Biden signed the CHIPS and Science Act into law Aug . 9
The act will reset global supply chains , boosting Washington manufacturing and workforce development .
In addition to spurring domestic semiconductor manufacturing , the act will also provide funding for technology hubs , applied research , and energy innovation .
When President Joe Biden signed the CHIPS and Science Act Aug . 9 , it marked the culmination of years of debate on U . S . competitiveness . And it marked the beginning of what many believe to be a strong future for manufacturing , research and innovation for the United States , and for Washington in particular .
“ This is the first inclusive moonshot in a generation ,” says Lisa Brown , director of the Washington State Department of Commerce . “ It ’ s not just the right thing to do , it ’ s a matter of economic survival . If we don ’ t diversify our economy and skill up our workforce , our businesses won ’ t be globally competitive .”
Details of how it will be implemented continue to emerge , meaning there ’ s still uncertainty as to how and when the funds will flow . Brown points out that the bill runs to more than 1,000 pages and Congress has yet to appropriate all the necessary funding . The first funding notices are expected in February .
“ This is the first inclusive moonshot in a generation .”
— Lisa Brown , director , Washington State Department of Commerce
But there ’ s no uncertainty regarding the short- and long-term effects for the nation ’ s competitiveness , at a time of multiple global crises . The pandemic sharpened focus on the fragility of international supply chains . Tensions with China over Taiwan , and Russia ’ s invasion of Ukraine further underscored the need for America to reduce its dependence on foreign manufacturing .
38 association of washington business