U.S. Senate Majority Leader Chuck Schumer is calling it "the 21st Century's Erie Canal."

The newly signed CHIPS and Science Act will devote over $50 billion in federal incentives to support high-tech chip production in the United States.

Some of the funding will support a corridor of advanced manufacturing facilities across New York State, including the Western and Central New York regions.

Senator Schumer lauded the new legislation during a press conference on August 11 at a car dealership in Genesee County.

"This means lowering costs for families, strengthening our national security, and bringing manufacturing back to Upstate New York," said Senator Schumer. "With its rare combination of a world-class workforce, advanced manufacturers, and renowned higher education institutions, I wrote and championed this legislation with Upstate New York always at the forefront of my mind and now it is primed to reap the rewards."

The STAMP facility in Genesee County and the White Pine Commerce Park in Central New York are two of the New York sites that will benefit from the push to bring manufacturing back to the U.S.

According to Senator Schumer, only 12% of chips are currently manufactured domestically, compared to 37% in the 1990s. Nearly 75% of global semiconductor production is now occurring in East Asia. The Senator said the legislation will help turn the tide on this trend.

The hope is that the investment will also ease supply chain delays that have plagued the delivery of everything from computers to the car industry.

AAA Western and Central New York Chief Information Officer Peter Balisteri shared remarks at the press conference alongside Senator Schumer.

"The chip shortage makes it difficult for manufacturers to build new vehicles and for consumers to buy new vehicles," Balisteri said. "As an advocate for traffic safety and a club for motorists, AAA supports efforts to increase chip production. Drivers deserve the right to purchase new, safe vehicles to fit their needs!"

For more than 70 years, AAA has issued a report called “Your Driving Costs.” It looks at the average costs of owning and operating a new automobile.

According to the latest research from AAA, the average yearly cost to own and operate a new vehicle in 2022 is $10,728, or $894 per month. The report shows that fuel prices are pushing up the ownership price tag this year, while the semiconductor chip shortage is creating low inventory for new vehicles.

Balisteri added, "We appreciate the support from Senator Schumer’s office to address the chip shortage and provide relief for car buyers. Hopefully, this will alleviate the low inventory that has been predicted through 2023."

To read more about AAA's "Your Driving Costs" research, click here.

AAA Financial