FOR IMMEDIATE RELEASE—August 04, 2022
Hagåtña, Guam - The ability to power everything from cell phones to cars may soon be manufactured right here in Guam. Yesterday, President Joe Biden signed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022, also known as CHIPS Act, into law. The CHIPS Act promotes domestic manufacturing of semiconductor chips by strengthening domestic semiconductor manufacturing, design and research, fortifying the economy and national security, and reinforcing America’s chip supply chains.
In March, following a request for information from the United States Department of Commerce to expand domestic chip manufacturing capacity, Vice Speaker Tina Rose Muña Barnes and the members of the Transshipment Taskforce (TSTF) Subcommittee on Federal and Local Regulation responded with a proposal to bring this industry to Guam, tapping into billions of dollars in investment from the federal government[1].
“It’s become even more apparent that a thriving semiconductor industry is critical to the U.S. economy, national security, and technology leadership. Because of our proximity to raw materials, the ability to transport goods tax free, and our local qualifying certificate program, Guam is the ideal location for a manufacturing hub. With the hard work of the Transshipment Task Force, I am confident that we can make this idea reality,” stated Vice Speaker Tina Rose Muña Barnes.
The share of modern semiconductor manufacturing capacity located in the U.S. has declined from 37% in 1990 to 12% today. While federal investments in chip research have held flat as a share of GDP, other countries have significantly increased their research investments in this industry. In response to the growing divide between local and foreign chip manufacturing, Congress passed the CHIPS Act of 2022, which includes semiconductor manufacturing grants, research investments, and an investment tax credit for chip manufacturing.
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[1] TRANSSHIPMENT TASK FORCE - Subcommittee on Federal and Local Regulations RFI Submission https://www.regulations.gov/comment/DOC-2021-0010-0066