America’s Semiconductor Industry Association (SIA) has welcomed the Senate passage of Federal investments in chip technology included in the bipartisan US Innovation and Competition Act (USICA).
The bill, introduced by Senators Chuck Schumer and Todd Young as the Endless Frontier Act and expanded in its current name, includes US$52bn in Federal investment for the domestic semiconductor research, design, and manufacturing provisions in the CHIPS for America Act.
“Senate passage of USICA is a pivotal step toward strengthening US semiconductor production and innovation and an indication of the strong, bipartisan support in Washington for ensuring sustained American leadership in science and technology,” said SIA president and CEO, John Neuffer.
“We applaud Senators Schumer, Cornyn, Warner, Young, Kelly, Cotton and others for their leadership in promoting Federal investments in US semiconductor manufacturing, research and design and commend today’s Senate approval of these provisions in USICA.
“We call on the House to swiftly pass needed Federal investments in domestic chip technology and send legislation to the President’s desk to be signed into law. Enactment of these investments would help strengthen America’s economy, national security, technology leadership and global competitiveness for years to come.”
The share of global semiconductor manufacturing capacity in the US has decreased from 37% in 1990 to 12% today, according to a report by SIA and the Boston Consulting Group (BCG).
Additionally, notes the SIA, Federal investment in semiconductor research has been flat as a share of GDP, while it says other governments have invested in research initiatives to strengthen their own semiconductor capabilities.
Global semiconductor supply chain vulnerabilities have emerged in recent years that must be addressed through government investments in chip manufacturing and research, according to a separate SIA-BCG study.
Congress in January enacted the CHIPS for America Act as part of the FY 2021 National Defense Authorization Act (NDAA).
The law calls for incentives for domestic semiconductor manufacturing and investments in chip research.