Coalition calls on Congress to invest in domestic semiconductor manufacturing, research and design
The Semiconductor Industry Association (SIA) – along with a broad coalition of 19 other tech, automotive, medical, defense, and other trade and labor groups – in a letter urged Congress to order funding for manufacturing initiatives, licensed semiconductor research and design. in the “Creating Helpful Incentives for the Production of Semiconductors” (CHIPS) for America Act. On June 8, the Senate approved $ 52 billion in funding for CHIPS under the U.S. Innovation and Competition Act (USICA), but the House has yet to approve such funding.
The coalition letter also calls on Washington leaders to enact an investment tax credit, as provided for in the Facilitating American-Built Semiconductors (FABS) Act, to help build and modernize manufacturing facilities for semi -conductors in the United States.
“Semiconductors are at the heart of the U.S. economy, national security, and global leadership in strategic technologies, so investing in domestic chip production and innovation is a national priority,” said John Neuffer, President and CEO of SIA. “Our message to Congress is simple: America and the world need more semiconductors. Let’s do more on the American coasts. The US Senate has taken a big step forward by approving – with broad bipartisan support – $ 52 billion in funding to bolster semiconductor manufacturing, research, and design in the United States. Now the House and Senate must chart a course to send the legislation to President Biden’s office for signature. “
The share of global semiconductor manufacturing capacity in the United States has increased from 37% in 1990 to 12% today, according to a report by the SIA and the Boston Consulting Group (BCG). This decline is in large part due to substantial subsidies offered by the governments of our global competitors, placing the United States at a competitive disadvantage in attracting new builds of semiconductor manufacturing facilities, or “fabs”. Additionally, federal investment in semiconductor research has remained stable as a percentage of GDP, while other governments have invested significantly in research initiatives to build their own semiconductor capabilities, and incentives Existing US taxes for R&D are lagging behind those of other countries. In addition, vulnerabilities in the global semiconductor supply chain have emerged in recent years and need to be addressed through government investments in chip manufacturing and research, according to a separate SIA-BCG study.
The following groups, representing major sectors of the American economy and millions of American workers, signed today’s letter: AdvaMed – Advanced Medical Technology Association, Alliance for Automotive Innovation, American Automotive Policy Council, Autos Drive America , Information Technology Industry Council (ITI), IPC, Motor & Equipment Manufacturers Association (MEMA), National Association of Manufacturers (NAM), National Defense Industrial Association (NDIA), North America’s Building Trades Unions (NABTU), SEMI, Semiconductor Industry Association (SIA), Software & Information Industry Association (SIIA), Tech CEO Council, TechNet, Telecommunications Industry Association (TIA), Truck & Engine Manufacturers Association, United Auto Workers (UAW), US Chamber of Commerce and USTelecom – The Broadband Association.