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SIA Applauds Sen. Schumer Announcement on Promoting U.S. Competitiveness
February 24, 2021 | SIAEstimated reading time: 1 minute
The Semiconductor Industry Association (SIA) today released the following statement from president and CEO John Neuffer in support of Sen. Schumer’s announcement about strengthening U.S. competitiveness. SIA represents 98 percent of the U.S. semiconductor industry by revenue.
“We appreciate Sen. Schumer’s strong leadership in advancing legislation to promote U.S. semiconductor manufacturing and research and applaud his announcement today aimed at taking the next critical steps to improve U.S. competitiveness. The key to winning the global competition for leadership in the game-changing technologies of the future is to turbocharge U.S. innovation. To help accomplish that goal, we urge the Biden administration and Congress to invest boldly in domestic semiconductor manufacturing and research. Doing so will help keep the United States on top in this foundational technology, while also strengthening America’s economy, job creation, national security, and critical infrastructure.”
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 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.
Recognizing the critical role semiconductors play in America’s future, Congress recently enacted the CHIPS for America Act as part of the FY 2021 National Defense Authorization Act (NDAA). The new law calls for incentives for domestic semiconductor manufacturing and investments in chip research, but funding for these provisions must come through congressional appropriations. Last week, SIA and a broad coalition of other business leaders called on President Biden to work with Congress to fund the provisions in the CHIPS for America Act and to enact an investment tax credit to spur greater domestic chip production.
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