Building semiconductor plants is no easy feat, and our painfully slow permitting process makes it even harder. Environmental reviews under the National Environmental Policy Act can drag on for over a year, even when expedited. While environmental safeguards are important, delays like these are costly and put the U.S. at risk of falling behind in the global race for semiconductor leadership. Streamlining the review process without sacrificing protections would allow projects to break ground faster, creating jobs and securing supply chains.<\/p>\n\n\n\n

Rethink labor agreements<\/strong><\/h3>\n\n\n\n

The law doesn\u2019t require bidders to use project labor agreements, which favor unionized labor and increase costs, but the Biden administration had strongly encouraged them. In right-to-work states like Arizona, where the construction industry is largely nonunionized, the White House\u2019s pro-union posture risks keeping many qualified contractors from participating, slowing down projects and driving up expenses.<\/p>\n\n\n\n

Flexibility is key. The next administration should be neutral on whether CHIPS projects are built with union labor and instead keep the focus on hiring workers who have the skills to get the job done safely, on time and on budget.<\/p>\n\n\n\n

Fix profit-sharing rules<\/strong><\/h3>\n\n\n\n

The CHIPS Act includes a profit-sharing provision requiring companies to share \u201cexcess profits\u201d with the government if their projects perform better than expected. While meant to ensure accountability for public funds, the vague guidelines create significant uncertainty. Companies are left guessing how much they might owe or when, which discourages investment.<\/p>\n\n\n\n

This kind of unpredictability can have a chilling effect on investment decisions, particularly for companies weighing high-stakes, long-term commitments. For companies making large-scale investments, predictability isn\u2019t a luxury \u2013 it\u2019s a necessity. Worse, the ambiguity can lead businesses to overestimate profits to avoid penalties, upsetting shareholders and triggering regulatory scrutiny. Imagine investing billions in a facility only to face penalties for exceeding expectations. Clearer, more predictable rules would give companies the confidence to invest in critical semiconductor projects without fear of being penalized for success.<\/p>\n\n\n\n

The CHIPS Act is about more than just building factories; it\u2019s about securing America\u2019s future. Semiconductors are the foundation of modern life and critical to our economic and national security. If we want to stay ahead of global competitors like China, we need to double down on what\u2019s working and fix what isn\u2019t.<\/p>\n\n\n\n

For Arizona, the stakes couldn\u2019t be higher. As one of the country\u2019s fastest-growing semiconductor hubs, we\u2019re seeing firsthand how the CHIPS Act attracts investment, creates jobs and drives innovation. But delays, unnecessary costs and uncertainty threaten to hold us back.<\/p>\n\n\n\n

The incoming administration has a chance to make the CHIPS Act a model of effective policy. By addressing these challenges and making smart adjustments, we can unlock the full power of this law and solidify domestic leadership in advanced manufacturing for generations to come.<\/p>\n\n\n\n

When America commits to building, we don\u2019t just compete \u2013 we lead. Let\u2019s make sure the CHIPS Act keeps us in the driver\u2019s seat.<\/p>\n\n\n\n

Danny Seiden is president and CEO of the Arizona Chamber of Commerce & Industry.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This column by Danny Seiden originally appeared in the Phoenix Business Journal.  America\u2019s strength has always come from its ability to build infrastructure, industries and innovations that transform the world. The CHIPS and Science Act is proof of that. It\u2019s not just an investment; it\u2019s a message that America is serious about leading in semiconductor […]<\/p>\n","protected":false},"author":31,"featured_media":17757,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,47,979],"tags":[],"coauthors":[1344],"class_list":["post-17756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-development","category-infrastructure","category-manufacturing"],"yoast_head":"\n