The share global semiconductor manufacturing capacity in the U.S. has eroded from 37% in 1990 to 12% today, mostly because other countries’ governments have invested ambitiously in chip manufacturing incentives and the U.S. government has not. Meanwhile, federal investments in chip research have held flat as a share of GDP, while other countries have significantly ramped up research investments.
By enacting the CHIPS for America Act in the FY 2021 National Defense Authorization Act (NDAA), Congress recognized the critical role the U.S. semiconductor industry plays in America’s future. Now, the administration and Congress must fully fund the semiconductor manufacturing and research provisions authorized by the NDAA — and enact an investment tax credit — to strengthen America’s global leadership in chip technology for years to come.
We welcome the Feb. 24 executive order and stand ready to work with the Biden administration to ensure the strength and resilience of America’s semiconductor supply chains. As part of this effort, we urge the president and Congress to invest ambitiously in domestic chip manufacturing and research.
The semiconductor industry directly employs nearly 250,000 people in America and supports more than one million additional jobs throughout the U.S. economy. With bold greater federal investment in domestic chip manufacturing and research, our economic impact would be even greater.