White House Meeting Highlights Need for Investments in Domestic Semiconductor Technology
March 11, 2022 | SIAEstimated reading time: 2 minutes
The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer regarding the 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. governors, members of Congress, national security experts, and many others.
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
04/19/2024 | Marcy LaRont, PCB007 MagazineFor my must-read picks of the week, I’m highlighting Parker Capers, a young professional seeking employment, solid counsel from Dan Beaulieu on what your post-show plan should look like, more information and insight on “chiplets” and the need for secure data transfer standards from columnist Preeya Kuray, as well as Matt Stevenson’s design for reality wisdom. It’s a reminder to download one of our newest books (there are several) you don't want to miss if you are an assembler.
Absolute EMS Champions Collaboration Between Humans and Robots in Modern Manufacturing
04/19/2024 | Absolute EMS, Inc.Absolute EMS, Inc., an award-winning EMS provider of turnkey contract manufacturing services, offers a perfect factory environment that seamlessly blends robotic automation with human expertise.
ZESTRON Welcomes Whitlock Associates as New Addition to their Existing Rep Team in Florida
04/19/2024 | ZESTRONZESTRON, the leading global provider of high-precision cleaning products, services, and training solutions in the electronics manufacturing and semiconductor industries, is thrilled to announce the addition of Whitlock Associates to its esteemed network of sales representatives.
SEMI Applauds U.S. Chips Act Award for Samsung Electronics Facilities to Strengthen Domestic Semiconductor Supply Chain
04/17/2024 | SEMISEMI, the industry association serving the global electronics design and manufacturing supply chain, applauded the United States Department of Commerce’s announcement of a Preliminary Memorandum of Terms for an award under the CHIPS and Science Act to support the expansion of Samsung Electronics’ presence in Texas and the company’s development and production of leading-edge chips.
Ark Electronics Expands Global Manufacturing Factory Network in North America and Europe
04/17/2024 | PRNewswireElectronic Manufacturing Company Ark Electronics recently announced the expansion of its Global Factory Network with the addition of Electronics Manufacturing Service (EMS) capabilities in Mexico and Europe.