SPRINGFIELD – To increase microchip production and attract companies to invest in Illinois, State Senator Suzy Glowiak Hilton (D-Western Springs) advanced legislation to create a series of tax credits to support the semiconductor industry.

“The United States depends on microchip imports to fulfill local needs,” said Glowiak Hilton, chair of the Senate Commerce Committee. “With semiconductor supply chain and worker shortages intensified by the pandemic, we can use this opportunity to build the industry in Illinois and create job opportunities for residents.”

In partnership with the Illinois Manufacturers’ Association, Glowiak Hilton’s proposal creates the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act to provide a range of tax credits for semiconductor, microchip and component part manufacturers to support new employee training while also encourage companies to develop operations in underserved communities and energy transition areas.

Nationally, the semiconductor chip supply chain has been fragile for years and has hindered manufacturing across the U.S. For economic security, Glowiak Hilton’s measure incentivizes bringing chip manufacturing back to local production. 

“If the pandemic has taught us anything, it’s the need for a strong American manufacturing sector including strengthening supply chains. The MICRO Act will incentivize in-state production of semiconductors, microchips, and their component parts amid a nationwide shortage that is impacting the availability of goods ranging from automobiles to cell phones,” said Mark Denzler, president & CEO of the Illinois Manufacturers’ Association. “We appreciate the leadership of Sen. Glowiak Hilton who understands the importance of producing these critical microchips here at home because of the importance to our economy.”

Senate Bill 3917 passed the Senate Revenue Committee Wednesday and moves for further consideration.