SIA Joins 120+ Business Leaders’ Call for Swift Enactment of Competitiveness Legislation
June 15, 2022 | SIAEstimated reading time: 2 minutes
The Semiconductor Industry Association (SIA) released the following statement from President and CEO John Neuffer in support of a letter sent by a broad coalition of 123 CEOs and senior executives representing major sectors of the American economy and millions of U.S. workers. The letter urges Congress to act urgently to pass a bipartisan, bicameral compromise version of competitiveness legislation, which is critical to America’s economy, national security, and supply chain resilience and will support the future of domestic semiconductor research, design, and manufacturing. Signatories include leaders from the tech, telecom, manufacturing, semiconductor, defense/aerospace, software, and other critical sectors.
“SIA joins U.S. business leaders in calling on Congress to swiftly pass competitiveness legislation that includes critical funding and incentives for domestic semiconductor research, design, and manufacturing,” said John Neuffer, SIA president and CEO. “As demonstrated by the breadth of signatories, America’s economy, workforce, national security, and technological leadership are built on semiconductors. Federal investment in the U.S. semiconductor ecosystem will ensure the U.S. continues to lead in the critical sectors of tomorrow, while also creating hundreds of thousands of high-paying American jobs, strengthening our economy, and securing our supply chains for decades to come.”
On Feb. 4, 2022, the House passed critical CHIPS Act investments totaling $52 billion to strengthen domestic semiconductor manufacturing and research as part of competitiveness legislation, the America COMPETES Act. The Senate passed the same level of funding for the CHIPS Act as part of its version of competitiveness legislation, the United States Competition and Innovation Act (USICA), in June 2021. House and Senate leaders must now work on reconciling differences in the bills and passing bipartisan legislation to be signed by the president.
An investment tax credit for semiconductor manufacturing and design, as called for by the FABS Act introduced in the House, is an important complement to the manufacturing incentives and research investments in USICA and America COMPETES. The House FABS Act should be included in the competitiveness legislation being negotiated.
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 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 production and innovation. Enacting the House FABS Act and funding the CHIPS Act are essential components of this holistic, complementary approach to strengthening America’s semiconductor capabilities over the long term.
The full letter is available on SIA's website.
Suggested Items
Enabling a New Paradigm for Flexible, Point of Need Design and Manufacturing
03/18/2024 | DARPAThe Department of Defense (DOD) needs the flexibility to manufacture critical structures at the time and point of need using locally available materials.
Join The Murray Percival Co. at IPC APEX EXPO 2024
03/15/2024 | Murray Percival CompanyThe Murray Percival Company, the award-winning leading supplier to the Midwest’s electronics industry, is excited to announce their participation in the upcoming IPC APEX EXPO, scheduled for April 9-11 at the Anaheim Convention Center in Anaheim, CA.
ROCKA Solutions Expands into Brazil
03/15/2024 | ROCKA SolutionsROCKA Solutions is thrilled to announce its expansion into Brazil. With a commitment to serving the growing needs of the Brazilian electronics manufacturing market, ROCKA has established new distribution and manufacturing services in the region.
Much Ado About Factory of the Future
03/13/2024 | Chris Jorgensen, IPCFor attendees looking for guidance on modernizing their manufacturing, IPC APEX EXPO 2024 will provide plenty of opportunities to learn about the latest innovations and how to begin applying them in your operations today. When walking the show floor, look for the IPC-CFX flags at vendor booths. These are equipment vendors who know the importance of IPC-CFX for their customers and the industry, and have demonstrated proficiency in IPC-CFX implementations.
DARPA Explores Additive Manufacturing’s Revolutionary Potential for Futuristic Microsystems
03/12/2024 | DARPADARPA played a seminal role in establishing materials science as a discipline. One of the latest disruptive efforts in new materials and applications, the Additive Manufacturing of Microelectronic systEms (AMME) program, seeks to launch microsystems manufacturing far beyond today’s state of the art.