Broad Coalition of Tech, Medical, Auto, Other Business Leaders Urge President Biden to Fund Domestic Semiconductor Manufacturing, Research in Infrastructure Plan

by Semiconductor Industry Association.

WASHINGTON—Feb. 18, 2021—The Semiconductor Industry Association (SIA), 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 (NDAA). 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 and below:

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February 18, 2021

The Honorable Joseph Biden
The White House
Washington, D.C. 20500

Dear Mr. President:

The undersigned associations, representing major sectors of the American economy, call on your administration to work with Congress to reinvigorate semiconductor manufacturing in the United States and increase semiconductor research by funding the initiatives authorized in the CHIPS for America Act enacted as part of the FY2021 NDAA and to enact an investment tax credit to help build and modernize more semiconductor manufacturing facilities in America.

Semiconductors play a critical role in enabling the products and services that fuel our economy, contribute to American innovation, and enhance our national security. Given the central role of semiconductors, strengthening the U.S. position in semiconductor research, design, and manufacturing is a national priority. While the governments of our global competitors have invested heavily to attract new semiconductor manufacturing and research facilities, the absence of U.S. incentives has made our country uncompetitive and America’s share of global semiconductor manufacturing has steadily declined as a result. To be competitive and strengthen the resilience of critical supply chains, we believe the U.S. needs to incentivize the construction of new and modernized semiconductor manufacturing facilities and invest in research capabilities.

The CHIPS for America Act authorized programs to promote U.S. semiconductor manufacturing and research, and now is the time to work with Congress to provide robust funding for these programs and enact an investment tax credit in your forthcoming recovery and infrastructure proposal. These initiatives will help grow the U.S. economy, increase jobs in advanced manufacturing, assure the supply of critical components essential to virtually all sectors of the economy, and strengthen our national security.

We believe the need is urgent and now is the time to act. We look forward to working with you on this national priority.

Sincerely,

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
Telecommunications Industry Association (TIA)
Trusted Supplier Steering Group
U.S. Chamber of Commerce