by Semiconductor Industry Association
WASHINGTON—April 5, 2021—The Semiconductor Industry Association (SIA) today submitted comments to the U.S. Department of Commerce in response to President Biden’s executive order on securing America’s critical supply chains. The submission highlights the importance of the global semiconductor supply chain to maintaining a strong semiconductor industry and identifies a range of vulnerabilities in the supply chain. It also urges the Biden administration and Congress to enact federal incentives for domestic chip production and investments in chip research to ensure the long-term strength and resilience of America’s semiconductor supply chain.
“Semiconductors are foundational to America’s economy, national security, health care system, and digital infrastructure, and they will be critical for U.S. leadership in the essential technologies of the future, including artificial intelligence, quantum computing, and advanced wireless communications,” said John Neuffer, SIA president and CEO, regarding SIA’s comments. “We appreciate President Biden’s focus on ensuring the strength and resilience of America’s semiconductor supply chains. As part of this effort, we look forward to working with the Biden administration and Congress to enact federal investments in domestic chip production and innovation so more of the semiconductors our country needs will be manufactured on U.S. shores.”
SIA’s comments include the following highlights:
To address supply chain vulnerabilities, SIA’s comments call on government to:
These vulnerabilities and required government actions to address them are also highlighted in a new study by SIA and the Boston Consulting Group, titled “Strengthening the Global Semiconductor Supply Chain in an Uncertain Era.”
The share of global semiconductor manufacturing capacity in the U.S. has decreased from 37% in 1990 to 12% today. This decline is largely due to substantial subsidies offered by the governments of our global competitors, placing the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or “fabs.” Additionally, federal investment in semiconductor research has been flat as a share of GDP, while other governments have invested substantially in research initiatives to strengthen their own semiconductor capabilities.
Recognizing the critical role semiconductors play in America’s future, Congress in January enacted the CHIPS for America Act as part of the FY 2021 National Defense Authorization Act (NDAA). The new law calls for incentives for domestic semiconductor manufacturing and investments in chip research, but funding must be provided to make these provisions a reality.
In February, the SIA board of directors – and later a broad coalition of business leaders led by SIA – called on President Biden to work with Congress to fund the semiconductor manufacturing incentives and research initiatives as part of his infrastructure plan.
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