Sens. Mark Kelly and Ted Cruz Unite to Slash Red Tape in U.S. Semiconductor Initiative

In an election year where collaboration is often scarce, an unusual alliance emerged between Arizona Democrat Sen. Mark Kelly and Texas Republican Sen. Ted Cruz. This week, they successfully advanced legislation aimed at expediting the construction of new semiconductor factories in the U.S.

The growing chipmaking industry holds significant importance for both Arizona and Texas, with lawmakers from both parties prioritizing domestic production for national security purposes. This sentiment has garnered support from President Joe Biden and former President Donald Trump alike.

“By streamlining the process, factories will produce chips faster, free from bureaucratic obstacles,” Kelly stated during an interview at the Capitol. He emphasized the potential for job creation that does not require a college degree. “This is about national security and good-paying jobs for families.”

The proposed legislation, known as the “Building Chips in America Act,” now awaits Biden’s signature. The president is anticipated to approve it, despite environmental concerns raised by advocacy groups.

The Senate had initially approved the bill unanimously in December, but it faced challenges in the House. “It was blocked in the House. Mark and I have worked closely to get it past the finish line,” Cruz remarked following the bill’s recent success.

A breakthrough occurred Monday, leading to a 257-125 vote in the House, with a notable divide in party support; less than half of Democrats and nearly all Republicans voted in favor.

Kelly reported extensive lobbying efforts in the days leading up to the vote, reaching out to House Democrats to secure the necessary backing for the bill.

This measure aims to streamline environmental reviews for semiconductor projects, crucial for bolstering domestic manufacturing capabilities. The urgency of such initiatives has been underscored by previous legislation, the CHIPS and Science Act, signed by Biden in August 2022, which dedicated $53 billion to U.S. semiconductor research and production. This act came in response to the drastic decline of U.S. global market share in microchip manufacturing, which the Council on Foreign Relations noted fell from 60% in 1990 to just 12% today.

Arizona has rapidly become a hub for the semiconductor sector, hosting major facilities by Intel and Taiwan Semiconductor Manufacturing Company (TSMC), both benefiting from substantial financial support under the CHIPS Act.

Semiconductors are critical components in a wide range of modern electronics, with the Semiconductor Industry Association forecasting a growth rate of 203% in the U.S. by 2032. Cruz, currently campaigning for a third term, faces scrutiny from opposition ads that criticize his original opposition to the CHIPS Act, despite his current support for semiconductor initiatives.

Sen. Kyrsten Sinema, an independent from Arizona and a co-sponsor of the Kelly-Cruz bill, emphasized the need for reduced regulatory barriers to maintain global competitiveness in semiconductor manufacturing. “I’m thrilled our bipartisan bill passed the U.S. House,” she stated.

Among Arizona’s congressional delegation, four Republicans and one Democrat supported the bill, while Rep. Paul Gosar voted against it, and three others were absent during the vote. “Bipartisan legislation is the most effective way to achieve results,” Kelly concluded, reaffirming the importance of collaboration in governance.