Semiconductor Industry News
July 7, 2023
By: Jaime Smith, Marketing & Communications Director
The CHIPS and Science Act passed in August 2022, has already spurred a flurry of private investments creating hundreds of Union jobs in Texas. We are gearing up for a major recruiting push to cover workforce needs as a result of this law, that is expected to last into the foreseeable future. The Biden Administration has taken another historic step that benefits the working class while setting America up for long-term success on the global stage for semiconductor production and innovation while including provisions to ensure workers are protected, promoting union labor, and growing the middle class.
Texas Instruments and Samsung have semiconductor projects in Texas that we are supplying the workforce to build. The combined investment announced for these projects totals $55.6 billion to date and applications for funds from the CHIPS & Science Act are just now being accepted. The Act supports good-paying union jobs by requiring Davis-Bacon prevailing wage rates for facilities built with CHIPS funding. Which means we can only expect even more work in the years to come.
“The CHIPS and Science Act invests in American semiconductor research, development, and production, which in turn, will form the foundation for American manufacturing in everything from cars to appliances, to defense systems. This is how we rebuild American manufacturing – with American businesses who hire American workers.”
- Doug McCarron, General President
The United Brotherhood of Carpenters and Joiners of America
The Carpenters Union officially announced their support for the effort to Rebuild American Manufacturing through the CHIPS and Science Act in August 2022. General President Doug McCarron explains, “We live in a global economy now and for too long, we have shipped good, middle-class jobs overseas on the promise that they would trickle down into better jobs here. But it just hasn’t worked. The Biden Administration is reversing that trend through deliberate, strategic, and bipartisan investments in critical sectors of our economy through the American Recovery Plan, the Infrastructure Investment and Jobs Act, and now, through the CHIPS and Science Act.”
In August, with the enactment of the CHIPS and Science Act, bipartisan leaders in Washington initiated a bold bet that an investment in U.S. chip production and innovation was an investment in America’s future.
Just four months after the enactment of the CHIPS and Science Act, the semiconductor sector has responded enthusiastically in anticipation of CHIPS incentives, announcing and initiating dozens of projects totaling $200 billion in private investment in the U.S.
The Background: U.S. vs China
For some time now, the U.S. has been in an entanglement with China over purchasing power. GDP (Gross Domestic Product) is a monetary measure of market value, meaning the total value of goods produced & services provided in a country during 1 year. Historically, Americans have comfortably sat at the top of this list, so our leverage in the global market was unmatched. In recent years, however, China has been steadily growing, inching closer to surpassing us for the top spot. How much power a country has on the global stage is due, in part, to how much the country purchases. That is why this measure is important. Over the last several decades, China’s influence has grown largely because they grew GDP and made significant investments in their country, and we didn’t.
President Trump enacted tariffs to manage this issue, which ended up hurting the United States. China was largely unaffected. Meanwhile, we had to spend $28 Billion in aid to farmers for lost exports, the average U.S. household experienced $1,300 in price increases, and China countered with widespread cyberattacks targeting engineering, telecommunications, and aerospace.
What We Are Doing Now
We are investing in our country. Several pieces of legislation were passed by Congress and signed by President Biden with the intent of building our manufacturing capabilities and creating jobs for Americans. The American Recovery Act, the Bipartisan Infrastructure Bill, the CHIPS and Science Act, and the Inflation Reduction Act are all investments in American workers, American manufacturing, and American construction. The CHIPS and Science Act in particular is aimed at growing American influence through increased GDP market share by investing in manufacturing, energy independence, and unionized construction.
The bulk of this investment, $39 billion, is allocated toward building and expanding semiconductor manufacturing facilities in the United States. Plus, tax incentives for companies who build in the U.S. They include measures to ensure companies cannot use funds to build in China or for stock buybacks and shareholder dividends. This money is an investment in American workers, the middle class, that supports good-paying, union construction jobs, requiring prevailing wages and hiring registered apprentices. Today, we rely on East Asia for 75% of global chip production. The CHIPS and Science Act will change that while improving supply chain issues and the overall economy.
According to the Secretary of Commerce Gina Raimondo, goals they set to achieve by 2030 include:
WORK DETAILS
Samsung's $25 billion chip plant located in Taylor, TX is their largest-ever investment in the United States and is set to cover 6 million square feet. The Central South Carpenters Regional Council has an agreement to complete interior systems and is providing metal framers for the project. We expect to employ up to 150 carpenters with both journeyman and apprentice classifications through Local Union 1266 in Austin.
Texas Instruments is also building a 300-millimeter semiconductor wafer fabrication plant in Sherman, TX with a potential $30 billion investment. This includes plans for four fabs that will manufacture millions of analog and embedded processing chips daily for use in electronics, particularly in the industrial and automotive markets. The CSCRC is supplying interior systems workers with a clean room certification through Local Union 429 in Arlington. Up to 200 carpenters will be working on the project for the next three years.
The CHIPS & Science Act is creating jobs for people in Texas, giving people the opportunity to build a better future for themselves and their families. This investment will also provide a major boost to the Texas and national economy, helping create a better future for all. With the support of the CHIPS & Science Act, we are confident that these projects will be successful in creating good-paying union jobs and paving a brighter economic future.
As part of our commitment to providing skilled workers for these projects, our apprenticeship program is the most extensive in the industry. Students will be able to get hands-on experience while earning a paycheck and building the skills they need for a successful career in construction. This is an amazing opportunity that we are proud to be part of, and we look forward to seeing what our future generations can create with this invaluable training.
The CHIPS & Science Act helps ensure people are employed in high-paying jobs and that they have the resources to sustain their families. With this investment, we can help build a better future for generations to come.
If you or someone you know are interested in learning more about a career in the construction industry, call or stop by your local union office.
Visit https://www.centralsouthcarpenters.org/Locals to find the Local Union nearest you.
Share this post on:
RECENT POST
CSCRC builds Semiconductor Manufacturing Plants
July 3, 2023
Infrastructure Project: R.S. KERR DAM in Oklahoma
June 20, 2023
Labor Relations Effect on Infrastructure Projects
May 13, 2023
The Council Rallies Against Tax Fraud in San Antonio, TX
April 13, 2023
New Protections for Migrant Workers Reporting Worksite Violations
January 16, 2023
Mitch Landrieu Guest Speaker at CSCRC
Delegate Conference
December 19, 2022
Wage Theft Ordinance Passes in Austin, TX
December 13, 2022
EST Engels Speaks on Wage Theft in Disaster Cleanup.
September 12, 2022
DOL District Director, Troy Mouton, warns against Wage theft.
August 17, 2022
Wage Theft - Potter County Courthouse Project
July 12, 2022
Infrastructure Bill
November 10, 2021
SUBSCRIBE TO OUR NEWSLETTER
© Copyrights by Central South Carpenters. All Rights Reserved.