In a significant move to bolster the U.S. semiconductor industry, President Joe Biden signed a landmark legislation on Wednesday that exempts certain semiconductor manufacturing facilities from federal environmental reviews. This decision aims to accelerate the growth of the sector by streamlining the approval process for factories receiving government subsidies.
Under the $52.7 billion CHIPS Act of 2022, without this new exemption, semiconductor projects could have faced lengthy federal environmental reviews under the National Environmental Policy Act of 1969. Proponents argue that these facilities have already met stringent federal, state, and local environmental standards, and additional reviews would have caused unnecessary delays, potentially halting projects in their tracks.
The U.S. Commerce Department has earmarked over $35 billion for 26 semiconductor projects, including hefty investments in global giants like South Korea's Samsung, Intel, Taiwan region's TSMC, and Micron Technology. These funds are set to expand chip production in Texas and other key states, reinforcing America's position in the global tech landscape.
Supporters of the legislation, including Democratic Senator Mark Kelly and Republican Senator Ted Cruz, emphasize the importance of onshoring chip production to reduce dependency on foreign manufacturers, particularly from China, which is vital for national defense. Senator Kelly highlighted the creation of thousands of well-paying jobs and the strengthening of supply chains as key benefits.
However, not everyone is on board. Environmental groups like the Sierra Club and U.S. Representative Zoe Lofgren raised concerns about the potential risks of sidelining environmental reviews. They stress that such assessments are crucial for safeguarding communities and workers from hazardous contaminants associated with the semiconductor industry. Lofgren pointed to past environmental issues in California's semiconductor sites as a cautionary tale.
The White House has reassured that despite the exemptions, it remains committed to upholding clean water, air, and endangered species protections. This balance aims to foster industry growth while maintaining environmental integrity.
The Semiconductor Industry Association had warned that without this legislation, many ongoing projects could have faced significant delays or even shutdowns. As the U.S. pushes to regain its technological edge, this legislation marks a pivotal step in reshaping the semiconductor landscape.
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Biden exempts some semiconductor factories from environmental reviews
cgtn.com
