Semiconductor Streamline: New Legislation Cuts Environmental Reviews

President Joe Biden has signed legislation exempting some U.S. semiconductor facilities from additional federal environmental reviews. The law aims to prevent delays for projects under the CHIPS Act of 2022, which funds major companies like Intel and Samsung. However, environmental groups argue that the reviews are essential for safety.

In a significant move for the semiconductor industry, President Joe Biden on Wednesday signed a law exempting certain U.S. manufacturing facilities from additional federal environmental reviews. The legislation aims to accelerate projects funded by the $52.7 billion CHIPS Act of 2022, which could have faced delays due to extensive federal scrutiny under the National Environmental Policy Act.

Proponents argue the projects already meet existing environmental mandates, while critics, including the Sierra Club, counter that these reviews are crucial for community safety from hazardous materials. Despite divergent views, the U.S. Commerce Department has allocated over $35 billion to significant projects involving industry giants like Samsung and Intel.

While the bill enjoys bipartisan support from figures like Senators Mark Kelly and Ted Cruz, some concerns persist. U.S. Representative Zoe Lofgren criticized the exemption, highlighting past pollution from semiconductor sites and urging that essential environmental reviews remain in place to avoid repeat offenses.

(With inputs from agencies.)