Remarks by President Biden in Roundtable With CEOs and Governors in Support of the Bipartisan Innovation Act

South Court Auditorium

2:05 P.M. EST

THE PRESIDENT:  All proper.  Well, thanks, all people, for being right here.  And for my colleagues which might be on the display, thanks for being right here.

I’m happy to be joined by — by a gaggle of very distinguished folks, and significantly by the governor from Indiana, Eric Holcomb; and my good buddy, Gretchen Whitmer, from the state of Michigan; and some of America’s world leaders and most vital producers in the world and — Cummins, Hewlett-Packard, Meda- — Medtronic, Micron, Samsung, Whirlpool.

And simply final week, in my State of the Union message, I stated that we’re seeing the revitalization of American manufacturing, particularly in the Industrial Midwest.

Our financial system created 432,000 [423,000] new manufacturing jobs in America since we took workplace.  And right now, firms are selecting to construct new factories right here — right here in the United States, when just some years in the past, they’d have constructed them abroad.

What I additionally stated is that firms are able to do extra — much more if Congress passes the Bipartisan Innovation Act.  And that’s why we’re right here to right now to speak about the bipartisan act.

And we’ve got the President and CEO of Micron with us.  Sanjay, thanks for being right here.  Micron is trying to making a multibillion-dollar semiconductor funding right here in America if — if this invoice will get handed.  

And Dr. Choi, the CEO of Samsung, can also be on the display.  Thank you for being right here.  Samsung has dedicated $17 billion — its largest-ever U.S. funding — to construct a semiconductor facility in Texas, which I perceive goes to create 2,000 good-paying jobs.

Other CEOs which might be listed here are making their very own investments in America.  But they want Congress to go the bipartisan innovation invoice.

And one of the causes — one of the causes we have to do that’s as a result of there’s maybe no manufacturing extra vital than reclaiming America’s management and proudly owning our future than semiconductors.

You know, these semiconductors which might be the measurement of a fingertip, energy about day-after-day — nearly every part in our on a regular basis life — smartphones, the Internet, home equipment, applied sciences we haven’t invented but.

And our nation — and the semiconductor was invented right here in the United States of America.  And over 30 years in the past, America had 40 % of the world manufacturing of semiconductors.

But since then, one thing occurred.  American manufacturing — the spine of our financial system — received hollowed out.  Companies moved jobs and manufacturing abroad, particularly from the industrial Midwest.

As a end result, right now, we barely produce 10 % of these pc chips, regardless of being a frontrunner on chip design and analysis.

This places us at the mercy of shortages and provide chain bottlenecks.  But we’ve got a chance — we’ve got a chance to reclaim the place of management.

I believe it’s a bipartisan consensus.  There’s an inno- — there’s an innovation invoice that — this innovation invoice has bipartisan assist in each House and Senate now.  

It contains billions of {dollars} for brand new incentives to provide semiconductors right here in America.

And the invoice is not only about funding semiconductors; it contains an workplace at the Department of Commerce that shall be tasked with monitoring and strengthening essential provide chains.  

And it — and it expands applications that assist producers throughout the nation profit from our investments, significantly small producers.

It invests in R&D the manner we have to so we will invent and make the applied sciences of the future and in industries like biotechnology, synthetic intelligence, telecommunications, and others we will barely think about right now and which we’re going to construct a basis for future jobs and prosperity not simply right here however round the world.

So right now, I’m urging the House and Senate to work out the variations between their ver- — two variations of this invoice and get it to my desk as shortly as you’ll be able to.

Passing this invoice will do 4 vital issues:

First, it can ship a message to the world that America is again in the sport, open for funding, dedication to creating clear vitality financial system and competing to win in the twenty first century.

Second, we’re going to create jobs: good paying, cutting-edge jobs; manufacturing jobs — many who don’t require a four-year school diploma.

Third, making it in America is one of the methods we will deal with our price and provide chain challenges.  When we construct a pr- — after we construct merchandise we’d like, we don’t have to attend.  And we cut back ship- — delivery prices.  And we will get items transferring quicker.

And fourthly, we’ve got — it will likely be a — it can imply that we aren’t overly reliant on different international locations from dangers like wars and pandemics.  And I noticed it throughout the pandemic that after we wanted it the most, we had been in brief provide of masks, robes, gloves, ventilators, and different important tools.

We ought to by no means be in that place once more.  And the backside line is that this Bipartisan innovation invoice will permit us to stamp extra merchandise “Made in America”.  And it’s going to bolster our nationwide safety and our financial safety.

It issues, so let’s get it completed.

And now, it’s my honor to show this over to the governors, and then we’re going to listen to from the CEOs.  And so, Governors, I’m positive they agree with the Ohio Senator Sherrod Brown, who stated, “It’s time to bury the label ‘Rust Belt.’”  (Laughs.)

Like, the Industrial Midwest right now, you see one thing particular is occurring.

Let me begin with you, Governor –- Governor Holcomb from Indiana.

GOVERNOR HOLCOMB:  Yeah, thanks, Mr. President.  And, Madam Secretary, nice to be again with you once more.  I might simply echo or underscore the level that — factors that you simply’ve made.  And actually, the Midwest is now not the Rust Belt; it’s a shining buckle on that belt.  And we’re simply open for enterprise however capable of do extra.

This innovation invoice — final invoice that comes collectively is a key half of our futures.  It’s a key half of a Midwestern microelectronics hall, if you’ll, that has every part to do with financial growth and nationwide safety.

For a state like Indiana — and you can in all probability say this about lots of Midwestern states — however we’re heavy intensive in manufacturing — primary per capita for a state like Indiana.  Five auto OEMs, medical units, the record simply goes on and on and on.  

And I might — I might simply say that it’s two issues.  One, it’s been stated that pace kills, and in this sense, sluggish pace kills.  We must get this completed.  We must get it in your desk.  We must get it signed in order that we can’t simply meet up with the competitors however lead. 

We know just a little one thing about this in Indiana.  We received the Indy 500, and we prefer to go quick.

THE PRESIDENT:  (Inaudible) going quick.  A gallon of gasoline is down 14 % right now.  (Laughter.)  So I wish to make sure that they go quick.

GOVERNOR HOLCOMB:  Yeah. 

THE PRESIDENT:  And I didn’t imply to interrupt you.  I’m sorry.

GOVERNOR HOLCOMB:  Yeah.  No, so, you understand, it’s pace.  We received to get there, and we received to get there yesterday.  And then additionally partnerships. 

And for us in the Midwest, we’ve got these expertise pipelines, Madam Secretary, that we’ve spent lots of time speaking about: Purdue University, one of the largest engineering faculties in the nation — prime ranked; Rose-Hulman, number-one undergraduate engineering college.  

So we’ve received a group school system that’s constructed — the construction in place — in addition to Naval Surface Warfare Center Crane, with the DOD — and all the analysis that goes into it. 

So these — the federal, the non-public sector, and the state governments that come collectively — these partnerships are in place proper now in order that we will get it to your desk and get on with enterprise.

THE PRESIDENT:  I’ll do something to assist in the event you get me to have the ability to drive a lead automotive in the Indy.  (Laughter.)

GOVERNOR HOLCOMB:  Write that down.  (Laughter.)

THE PRESIDENT:  You assume I’m kidding.  You assume I’m kidding.  I’m not kidding.  (Laughter.)

GOVERNOR WHITMER:  Oh, we all know you’re not kidding.

GOVERNOR HOLCOMB:  No.

THE PRESIDENT:  You know.  (Laughs.)

GOVERNOR WHITMER:  We’ve seen you drive lots of automobiles in Michigan. 

THE PRESIDENT:  I do know.  Oh, God, I inform you what —

GOVERNOR HOLCOMB:  I believe the Secretary is driving the tempo automotive, by the manner.

GOVERNOR WHITMER:   Yeah.  (Laughs.)

THE PRESIDENT:  Yeah, I do know.  I — I don’t know, man.  I’m prepared.  Anyway. Gov.

GOVERNOR WHITMER:  Yeah, nicely I’m — I’m actually glad to be sitting right here subsequent to Eric as a result of, in the Midwest, you understand, we’re proud of what we do.  We work arduous.  We clear up issues.  We’re not afraid of digging in.  And this — I believe this act that we’re speaking about is a big alternative for our nation. 

You know, in locations like Michigan, that is about creating good-paying jobs.  This is about reducing prices for households.  This is about our nationwide safety. 

I do know my fellow governors on either side of the aisle assist getting this to your desk so as to signal it and make a actuality.  You know, proper now, 1000’s of jobs up and down the auto provide chain are in danger as a result of we’re not making chips; we don’t have entry.  

But I additionally know — my buddy from Whirlpool right here, additionally from Michigan, goes to remind me it’s not simply the auto trade — proper? — it’s home equipment as nicely.  It is the smartphones, as you stated, Mr. President.

You know, chip shortages have impacted greater than 575,000 American jobs.  And in 2021 alone, automakers in North America misplaced manufacturing of an estimated 2.2 million autos, equaling 3,000 days of work.  So, these shortages are driving up prices, they’re jeopardizing households.   And growing this manufacturing right here at house will cut back provide chain delays in transportation, in addition to reducing the price of client electronics, et cetera, et cetera. 

But we additionally noticed throughout the pandemic that American manufacturing is essential to our nationwide safety.  And when the entire world involves a halt as a result of swabs are manufactured in Italy or N95 masks are manufactured in China, it’s a nationwide safety difficulty.  

So, doing this vital superior manufacturing the place we will stamp it “Made in America” and ideally “Made in Michigan” is an effective factor for our entire nation.  And so, that’s why I believe it’s so vital that either side of the aisle — we’re right here, we’re desperate to throw our assist behind getting this invoice to your desk, and acknowledge that essential significance to the folks of our states and our nation.

So, I’m excited to be right here and keen to leap in wherever we might be useful.

THE PRESIDENT:  You know, we’re outdated associates.  You’ve heard me say many instances — you understand, that was one thing my pricey mom, God bless her soul, used to say: “Out of every part dangerous, one thing good will occur in the event you look arduous sufficient for it.”  

And I believe we’re in a place now — we’re in an actual inflection level in historical past — not simply America, however throughout the world.  There are going to be modifications which might be going to — whether or not — regardless of who’s in cost, they’re going to create elementary — elementary change is happening geographically, politically, economically, technologically.

And, you understand, one third of the inflation final 12 months was as a result of of the price of cars, and it was one purpose: didn’t have the pc chips.  Rising costs had been — you understand, that’s one third of the inflation.  And so, we will clear up lots of that. 

I’d prefer to, along with her permission — Liz, I’d prefer to go to you just a little bit, talking of Whirlpool.

And you introduced an $80 million funding in a producing plant in Ohio and Oklahoma final 12 months, that are going to create about 250 jobs, if I’m not mistaken.

My query is that — (coughs) — excuse me — why is home manufacturing of semiconductors vital to Whirlpool?  And how will this bipartisan initiative, if it passes it and will get to my desk — how that’s going to have an effect on you?  

I believe I do know the reply, however I believe it’s vital for it to be heard from you.  No, I actually imply it.  I believe it’s vital.

Look, the one factor we’ve had as we introduced in CEOs and VPs and others the final, I don’t know, a pair months, proper right here in this fora, is folks go, “Whoa, that is actual,” after they hear from the firms what they wish to do. 

And so I’d like to — you to inform me just a little bit about the way you see it transferring, in the event you would.

MS. DOOR:  Well, first of all, thanks, Mr. President, for inviting Whirlpool Corporation to sit down right here right now at this desk with all these leaders.  We’re very, very grateful to have the ability to be right here right now. 

What I might say is that the $80 million funding in Ohio and Oklahoma, as you stated — you understand, that’s us supporting the United States.  Additionally, we’ve got made an funding, $60 million dedication, in Michigan in our R&D Center.  So that is demonstrative of our dedication to the United States.

We have 9 factories in the U.S.  We promote — 80 % of the merchandise that we promote in the U.S. are produced in the U.S.  So it’s positively a dedication right here to the United States.

We have been challenged with the provide chain — you understand, not with the ability to ship home equipment to every of the shoppers in the U.S. day-after-day as a consequence of the semiconductor points.

We see the semiconductors as an integral part to our home equipment.  They’re discovered in nearly each one of our home equipment, and they’re completely essential as a result of they ship the know-how that delights our shoppers, whether or not it’s cleansing your laundry or your dishes, or cooking in the house, or utilizing it to retailer your meals and drugs throughout these very difficult instances.

So, semiconductors are completely important for us.  And actually, if we had all the semiconductors, as Governor Whitmer stated, we’d be capable to ship the home equipment to all of our clients, which we’ve got been challenged to take action.  

But we’re completely dedicated to ship to our shoppers day-after-day.

THE PRESIDENT:  Do you assume your clients and/and even perhaps some of your workers who’ve been round a very long time actually appreciated how essential a semiconductor was for them to make the merchandise and transfer?

MS. DOOR:  Absolutely.  I believe everybody inside our firm — and I even assume in the event you ask shoppers — and world leaders are very, very acquainted now with semiconductors and how essential they’re to know-how, analysis and growth, upskilling the workforce, and STEM schooling.  So, completely.

THE PRESIDENT:  Well, it’s fascinating.  And I believe it’s been a — sadly, a — you understand, it’s been a actuality that the American public realizing {that a} semiconductor mattered an awesome deal whether or not or not your washer functioned, or whether or not your cellphone functioned, or whether or not your car functioned. 

And it’s not that — I believe we — they only took an terrible lot with no consideration; all of us did — that this was, “We can do that.  It’s not an issue.” 

And the irony of — I preserve reminding all people of the irony is: We really invented the semiconductor; we headed to the Moon.  So, we additionally — I’ve no parenthetic.  We received to be — begin investing a hell of much more cash in analysis and growth — pure analysis and growth. 

We used to do about 2 % of our GDP; now we’re down by 1 %.  And it’s — anyway, however I don’t wish to get off on that and get you going. 

Well, thanks.  I’d additionally like Madam President, Jennifer, I — you — at Cummins, you make some fairly massive engines.  You manufacture — and — now — however now you’re making battery electrical different gasoline engines, proper? 

MS. RUMSEY:  That’s proper.

THE PRESIDENT:  And so, how has the ship [sic] scarcity affected — chip scarcity affected your organization and your clients?  And as we transfer towards this vitality future, how can this Innovation Act — and it’s a disgrace — you need to know all about this laws; I imply, you’re working the firm — however how can this act assist firms like yours stay globally aggressive, not simply right here at house?

MS. RUMSEY:  Right.  Yeah.  Well, first, Mr. President, thanks a lot for the alternative to talk right now and discuss Cummins’s assist of each the home innovation focus of this laws in addition to funding semiconductor manufacturing.

Cummins is a 100-year-old firm headquartered in Columbus, Indiana.  We make use of 25,000 workers in the United States.  And our workers are actually centered on driving innovation and producing energy options, engines, and additionally, as you stated, gasoline cell and battery-electric energy options for business and industrial tools.  And these functions serve some of the world’s most demanding and economically very important functions. 

I frolicked, previous to my present function, as chief technical officer, so I noticed firsthand the want for innovation —

THE PRESIDENT:  (Inaudible.) (Laughter.)

MS. RUMSEY:  — yeah, actually — the want for innovation, and the energy of authorities and non-public sectors coming collectively to give attention to innovation.

Cummins labored intently for a quantity of years with the Department of Energy — a twenty first Century Truck Program.  And in that program, we had been capable of advance know-how and enhance gasoline effectivity in vans by 50 % — a 50 % discount in CO2.  And a lot of that work has now made its manner into vans which might be on the highway right now and are benefiting society.

And I believe there’s by no means been a extra vital time than now to proceed to give attention to home innovation when you think about the environmental and the technical challenges that we face as a society.

So, I believe it’s critically vital that we will come collectively.  Our trade and different industries are remodeling how we are going to compete as we deal with these challenges — like, local weather change is altering.

And so, I believe coming collectively in a bipartisan method to discuss how we drive and gasoline innovation in America is essential to maintain us at the vanguard with these superior applied sciences and new options and carry high-tech and manufacturing jobs to the United States and the future.  So, I believe it’s critically vital.

In my operational function, I’ve been spending lots of time on this semiconductor difficulty, and it has been an actual difficulty for us for the final 18 months.  Our merchandise don’t run, in most instances, with out semiconductors.  They’re essential for emissions and safety-control programs.  And more and more, we’re using them as our know-how advances. 

And we’ve got not been capable of get sufficient.  It has impacted our potential to construct and ship product to our clients.  And it’s a difficulty we proceed to cope with right now.

So we strongly assist the CHIPS Act, actually specializing in bringing home manufacturing of semiconductors right here, together with some for our trade — which, by the manner, are completely different than what we use in our cellphone.  You know, as a result of of the sturdiness and harsh surroundings our merchandise function in, we’ve got particular chips which might be essential to proceed to take a position and fund right here in the U.S. 

And so, we look ahead to being an element of the dialog as we transfer this vital work ahead.

THE PRESIDENT:  Well, you understand, the level you’ve all made is that as every part modifications, there’s a elementary shift to the actuality that we will’t — we will’t preserve the combustion engine the manner it has been.  It’s even — you see what’s occurring in locomotives now.  You know?  And you see what’s occurring simply throughout the board. 

And so — and I believe it presents an unlimited alternative — huge alternative to enhance the well being of the public total, primary, as a result of we’re transferring in the path, and we don’t must propel most of what we’ve got in the future by — with regard to grease merchandise or —

And, you understand, I used to be actually happy to — and Gina — or Gretchen and I talked about this lots.  When we met with the CEOs of the car firms, significantly Mary Barra — and she had sued the state of California for having the next mileage commonplace than the nationwide commonplace.  And we had a protracted speak.  I didn’t — I’m not taking credit score for her altering her thoughts, however she ended up calling me and saying that, “We’re going to go — we dropped the swimsuit, and we’re going to go all electrical.  We’ll get to midway there inside the subsequent…” — and then she stated a date.  And then Ford jumped on and all people else.  And it’s a — as a result of it’s the future.

And it additionally creates, actually, a hell of lots of jobs too — good-paying jobs — and growing the technological breakthroughs. 

And so, at any price, I believe what you’re doing actually issues.  And I do know we received lots to speak about.  You noticed the crew over right here.  I’m undecided about, you understand, anyone however Gina over right here on this aspect, together with me.  But all kidding apart, we received lots to do and I believe we will get lots completed.  I actually do. 

And there’s just a little factor happening in Europe proper now, and I’m not going to have the ability to stick with you the entire time we’re right here.  But that’s not going to in any manner diminish the content material of what we’re discussing right here.  

And, Brian, I’m informed that you simply’re going to run this present right here. 

MR. DEESE:  Yeah, we’ll provide you with an opportunity to depart, and the press as nicely, and then we’ll proceed on right here.

2:28 P.M. EST