United States President Joe Biden has signed legislation exempting certain U.S. semiconductor manufacturing facilities, receiving government subsidies, from additional federal environmental reviews.
These projects, funded by the $52.7 billion CHIPS Act of 2022, would otherwise have been subject to the National Environmental Policy Act (NEPA) of 1969, potentially causing years of delays, Reuters news report said.
Proponents of the new law argue that semiconductor projects have already met federal, state, and local environmental regulations and that further reviews would slow progress. Environmental groups, such as the Sierra Club, insist the reviews are essential to protect communities and workers from hazardous materials used in semiconductor manufacturing.
The U.S. Commerce Department has allocated over $35 billion to 26 projects under the CHIPS Act, including $6.4 billion to South Korea’s Samsung for its Texas expansion, $8.5 billion to Intel, $6.6 billion to Taiwan’s TSMC, and $6.1 billion to Micron Technology for U.S. factory development.
The White House has reaffirmed its commitment to ensuring these semiconductor projects meet environmental standards for clean air, water, and worker safety. However, the Semiconductor Industry Association warned that without the law, delays caused by environmental reviews could have hindered projects already underway.
The bipartisan bill, co-authored by Senators Mark Kelly (D) and Ted Cruz (R), aims to streamline the permitting process and boost U.S. microchip production. Kelly emphasized that the bill would help create jobs and strengthen U.S. supply chains, while Cruz framed it as a critical step in reducing dependence on China for semiconductors vital to national security.
However, Representative Zoe Lofgren (D) criticized the legislation, warning of the environmental risks from past semiconductor production and stressing the importance of NEPA reviews in preventing future pollution.
