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Metro manufacturers seek funding from CHIPS legislation

August 9, 2022

President Biden signed into law today a $280-million spending package for American semiconductor manufacturing.

The investment is designed to make the nation more competitive with China.

U.S. Rep. Sharice Davids believes the law may help create new jobs in the Kansas City region.

Davids met with local technology and manufacturing leaders Tuesday to discuss how to make the most of the CHIPS legislation.

Panasonic recently announced it will spend $4-billion to create 4,000 jobs at a Desoto, Kan., manufacturing plant that will build high-capacity batteries for Tesla electric cars.

Kansas Governor Laura Kelly says it's the largest private investment in Kansas history.

Davids believes chip manufacturing would fit hand-in-hand with the battery production that already will take place here.

"It sounds like the Kansas City metro area is a really, really great site for a number of different types of manufacturing," Davids said. "I definitely think that from what I heard today, chip manufacturing is something that our region would be really well suited to do."

Funding from the law is expected to flow to rural states like Kansas, thanks to a new formula for distributing research dollars.

The U.S. Department of Commerce will establish 20 regional technology hubs to create more tech jobs across the nation, and Davids says many people in Kansas City are working to become one of the hubs.

Supporters claim the new federal subsidies will help strengthen supply chains, lower costs and support U.S. manufacturing.