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LETTER TO BIDEN Business leaders in the USA need help with semiconductor manufacturing

Editor: Johanna Erbacher

The Semiconductor Industry Association, along with a broad coalition of 16 other tech, medical, auto, and other business groups, today in a letter urged President Biden to work with Congress to fully fund domestic semiconductor manufacturing and research provisions established in the recently enacted National Defense Authorization Act.

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Broad coalition of tech, medical, auto, other business leaders urge president Biden to fund domestic semiconductor manufacturing, research in infrastructure plan.
Broad coalition of tech, medical, auto, other business leaders urge president Biden to fund domestic semiconductor manufacturing, research in infrastructure plan.
(Source: gemeinfrei / Unsplash)

The letter also calls on leaders in Washington to enact an investment tax credit to help build and modernize more semiconductor manufacturing facilities in the United States. SIA represents 98 percent of the U.S. semiconductor industry by revenue.

The share of global semiconductor manufacturing capacity in the U.S. has decreased from 37 percent in 1990 to 12 percent today. This decline is largely due to substantial subsidies offered by the governments of our global competitors, which have placed the U.S. at a competitive disadvantage in attracting new fab construction. In addition, federal investment in semiconductor research has been flat, while other governments have invested substantially in research initiatives to strengthen their own semiconductor capabilities.

The coalition letter describes strengthening the U.S. position in semiconductor research, design, and manufacturing as a national priority, given semiconductors’ critical role in driving America’s economy, job creation, innovation, and national security.

“President Biden and Congress have an historic opportunity to invest boldly in domestic semiconductor manufacturing incentives and research initiatives to turbocharge American innovation and ensure the long-term strength of U.S. economic growth, job creation, national security, and this country’s chip supply chains,” said John Neuffer, SIA president and CEO. “We are pleased to join with leaders in a range of key tech, medical, automotive sectors, as well as broad business and manufacturing groups, to urge the president to prioritize investments in chip technology as part of the administration’s recovery and infrastructure proposal.”

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, SIA and the broad coalition signing the letter call on the administration and Congress to fully fund the provisions authorized by the NDAA and to enact an investment tax credit.

The following groups signed the letter: Advanced Medical Technology Association (AdvaMed), Alliance for Automotive Innovation, Autos Drive America, CTIA, Global Business Alliance, IPC International, Information Technology Industry Council (ITI), Motor & Equipment Manufacturers Association, National Association of Manufacturers (NAM), National Defense Industrial Association (NDIA), SEMI, Semiconductor Industry Association (SIA), Tech CEO Council, TechNet, TIA, Trusted Supplier Steering Group, and the U.S. Chamber of Commerce.

The full letter is available here.