CHIPS Act would 'unleash the power' of manufacturing industry in Ohio |Opinion

Ryan Augsburger is president of The Ohio Manufacturers’ Association, which represents approximately 1,500 manufacturers statewide.

More than ever, Ohioans are seeing how issues with our supply chains affect everyday life. From shipping delays to product shortages, we’re experiencing the impact caused by uncertain international trade routes and unreliable supplies of vital components produced abroad. Nowhere is this clearer than in the semiconductor industry.

Semiconductors are an essential component of all sorts of everyday products, from computers to cars to medical equipment to LED bulbs. That means a shortage of semiconductors creates challenges across the manufacturing sector, holding up essential goods and causing long delays for American consumers.

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And because most advanced semiconductors are produced in Asia, snarled international supply chains make it difficult for manufacturers in the United States to reliably access the chips they need.

We’re already seeing some companies address this challenge by committing to expand U.S. chip production. Earlier this year, Intel announced plans to invest $20 billion in leading-edge chip factories in Ohio.

The project will boost production of advanced semiconductors, create thousands of jobs, and help smooth supply chains, all while strengthening our economy and putting the United States in a stronger position to compete with China and its state-propped industry.

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That’s an important start — but to address this issue comprehensively, we will need to do more. Expanding domestic chip production requires overcoming incredibly high barriers, from enormous startup costs to regulatory burdens that are difficult for manufacturers to bear.

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If we are serious about building a viable and resilient U.S. semiconductor industry, we need Congress to pass pending legislation that would invest in domestic semiconductor manufacturing. The China competition legislation, which is currently being negotiated by congressional leaders, would invest $52 billion in domestic semiconductor manufacturing, putting states like Ohio at the forefront of high-tech manufacturing, while creating even more high-paying manufacturing jobs.

This legislation would also bolster other manufacturing priorities by reinforcing protections against counterfeiting, improving supply chain resiliency, fortifying important trade provisions, and strengthening U.S. energy leadership — ensuring American manufacturers remain competitive.

By passing this bill, Congress can reaffirm its commitment to American manufacturing. And by helping to ensure this legislation gets to President Biden’s desk, Ohio’s congressional delegation will be leading the fight for a strong, competitive manufacturing industry.

Manufacturing policy should be a bipartisan issue. Even at a time when Republicans and Democrats in Congress rarely agree on anything, both parties recognize the need to reduce supply uncertainty and increase American economic competitiveness with China.

Ohioans of all political stripes understand the value of a strong manufacturing industry and a reliable domestic supply chain. Legislative efforts to level the playing field, promote economic certainty, and create more abundant supplies will benefit both consumers and manufacturers. They will also significantly enhance our national security.

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At The Ohio Manufacturers’ Association, we have seen firsthand the incredible skill and resilience of the people in our industry. Our manufacturers are bold and motivated, prepared to stand up against any competitor and lead America into the future.

To bolster the competitiveness of U.S. manufacturing, we need to unleash the power of these extraordinary men and women, give them the tools and the support they need, and reaffirm our commitment to their critical mission.

Congress has a once-in-a-generation opportunity to strengthen U.S. manufacturing and to ensure it consistently wins on the world stage.

They should take it.

Ryan Augsburger is president of The Ohio Manufacturers’ Association, which represents approximately 1,500 manufacturers statewide. 

This article originally appeared on The Columbus Dispatch: Opinion: CHIPS Act funding needed to boost Ohio manufacturing industry