White House Meeting Highlights Need for Investments in Domestic Semiconductor Technology

Wednesday, Mar 09, 2022, 2:30pm

by Semiconductor Industry Association

WASHINGTON—March 9, 2022—The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer regarding today’s meeting at the White House about the importance of advancing initiatives to strengthen U.S. semiconductor manufacturing, research, and supply chains. The meeting included President Biden, governors, and senior executives from the semiconductor industry and major industries that rely on chips.

“We applaud today’s White House meeting between President Biden, governors, and industry leaders, and we echo their unified call for swift government action to strengthen America’s semiconductor capabilities, U.S. manufacturing, and our supply chains. Semiconductors are foundational to the U.S. economy and to a range of manufacturing sectors in America. Reinforcing U.S.-based semiconductor production and innovation will help secure America’s supply chains for critical, chip-dependent products, boost the United States’ overall manufacturing footprint, and create hundreds of thousands of American jobs.

“It’s time to fund the semiconductor manufacturing and research provisions in the CHIPS Act and enact a version of the FABS Act that includes an investment tax credit for semiconductor manufacturing and design. Getting these initiatives across the goal line will strengthen U.S. leadership in this foundational technology and help America avert future chip shortages.”

The share of modern semiconductor manufacturing capacity located in the U.S. has decreased from 37% in 1990 to 12% today. This decline is largely due to substantial manufacturing incentives 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, and existing U.S. tax incentives for R&D lag behind those of other countries. Furthermore, global semiconductor supply chain vulnerabilities have emerged in recent years that must be addressed through government investments in chip manufacturing and research, according to an SIA-BCG study.

A combination of grants, tax credits, and research investments is needed to turbocharge U.S. semiconductor research, design, and manufacturing. Funding the CHIPS Act and enacting a strengthened FABS Act are essential components of this holistic, complementary approach to strengthening America’s semiconductor capabilities over the long term.

Government investments to strengthen U.S.-based semiconductor research, design, and manufacturing have broad support from business leaders (including semiconductor industry leaders), U.S. governorsmembers of Congress, national security experts, and many others.

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About SIA
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. Semiconductors – the tiny chips that enable modern technologies – power incredible products and services that have transformed our lives and our economy. The semiconductor industry directly employs over a quarter of a million workers in the United States, and U.S. semiconductor company sales totaled $258 billion in 2021. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, SIA seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at www.semiconductors.org.