• President Biden signed a law exempting certain U.S. semiconductor facilities from federal environmental reviews.
• The legislation aims to accelerate construction of these sites, potentially avoiding delays under the $52.7 billion CHIPS Act of 2022.
• Despite controversy, the U.S. Commerce Department has allocated over $35 billion for 26 projects, including grants for Samsung, Intel, TSMC, and Micron Technology.
• The legislation, co-authored by Senators Mark Kelly and Ted Cruz, has been both praised for its potential to strengthen supply chains and criticized for its potential environmental impact.

In a significant move to bolster domestic semiconductor production, President Joe Biden recently signed legislation that exempts certain U.S. semiconductor manufacturing facilities from federal environmental reviews. This exemption applies to facilities that are receiving government subsidies, potentially accelerating the construction of these critical manufacturing sites.

The legislation is a response to potential delays that could have been imposed on projects under the $52.7 billion CHIPS Act of 2022. Without this new law, these projects might have been subjected to additional federal environmental reviews under the National Environmental Policy Act of 1969 to secure federal permits. Proponents of the legislation argue that these projects had already complied with federal, state, and local environmental regulations and permitting requirements.

However, the legislation has not been without controversy. Environmental groups, such as the Sierra Club, argue that the reviews are essential to keep communities and workers safe from the hazardous contaminants used in the semiconductor industry.

Major Investments in Semiconductor Production

Despite these concerns, the U.S. Commerce Department has allocated more than $35 billion for 26 projects. This includes $6.4 billion in grants under the 2022 law to South Korea's Samsung to expand chip production in Texas, $8.5 billion for Intel, $6.6 billion for Taiwan's TSMC to build out its American production, and $6.1 billion for Micron Technology to fund U.S. factories.

The White House has stated that it will continue to uphold our commitment to ensuring that semiconductor projects are built and operated in a way that meets clean water, clean air, endangered species, and other federal requirements and minimizes risks and impacts to workers, public health, and the environment. This statement suggests a commitment to balancing the need for rapid semiconductor production with environmental and public health considerations.

The legislation was co-authored by Democratic Senator Mark Kelly and Republican Senator Ted Cruz, indicating bipartisan support for the initiative. Kelly emphasized the bill's potential to prevent unnecessary delays in microchip manufacturing, thereby strengthening supply chains and creating jobs.

Criticisms and Historical Context

However, U.S. Representative Zoe Lofgren criticized the bill, pointing out that California has been home to sites polluted from prior semiconductor or microelectronics manufacturing. She argued that the country should learn from this legacy and avoid repeating it, calling reviews under the National Environmental Policy Act a vitally important tool in this regard.

This legislation is reminiscent of historical efforts to balance industrial growth with environmental considerations. For instance, the Clean Air Act of 1970 and its amendments in 1990 aimed to control air pollution while allowing for industrial development. Similarly, the National Environmental Policy Act of 1969, which this new legislation circumvents, was designed to ensure that all federal agencies consider the environmental impacts of their actions and decisions.