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

“The United States relies on microchip imports to fulfill local manufacturing 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 serve local production, 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. 

“Strong economies depend on strong supply chains,” Glowiak Hilton said. “The MICRO Act would strengthen the in-state supply of semiconductors, microchips and their component parts and increase availability for manufacturing production nationwide.”

Senate Bill 3917 passed the Senate Thursday and moves for further consideration in the House.