91成人

91成人 Urges U.S. Government Action to Strengthen America鈥檚 Semiconductor Supply Chain

by 91成人

WASHINGTON鈥擜pril 5, 2021鈥擳he 91成人 (91成人) today submitted comments to the U.S. Department of Commerce in response to President Biden鈥檚 on securing America鈥檚 critical supply chains. The submission highlights the importance of the global semiconductor supply chain to maintaining a strong semiconductor industry and identifies a range of vulnerabilities in the supply chain. It also urges the Biden administration and Congress to enact federal incentives for domestic chip production and investments in chip research to ensure the long-term strength and resilience of America鈥檚 semiconductor supply chain.

鈥淪emiconductors are foundational to America鈥檚 economy, national security, health care system, and digital infrastructure, and they will be critical for U.S. leadership in the essential technologies of the future, including artificial intelligence, quantum computing, and advanced wireless communications,鈥� said John Neuffer, 91成人 president and CEO, regarding 91成人鈥檚 comments. 鈥淲e appreciate President Biden鈥檚 focus on ensuring the strength and resilience of America鈥檚 semiconductor supply chains. As part of this effort, we look forward to working with the Biden administration and Congress to enact federal investments in domestic chip production and innovation so more of the semiconductors our country needs will be manufactured on U.S. shores.鈥�

91成人鈥檚 comments include the following highlights:

• 91成人 75% of semiconductor manufacturing capacity, as well as many suppliers of key materials, are concentrated in China and East Asia, a region exposed to high seismic activity, geopolitical tensions, and lack of fresh water and power.
• 100% of the world鈥檚 highly advanced (below 10 nanometers) logic semiconductor manufacturing capacity is currently located in Taiwan (92%) and South Korea (8%), due in no small part to healthy incentives and government support from these host nations.
• There are more than 50 points across the value chain where one region holds more than 65% of the global market share. Some of these single points in the value chain could be disrupted by natural disasters, infrastructure shutdowns, or geopolitical conflicts and may cause large-scale interruptions in the supply of essential chips.
• In addition, geopolitical tensions may result in trade restrictions that impair access to crucial providers of essential technology, unique raw materials, tools, and products that are clustered in certain countries. Such restrictions could also restrict access to important end markets, potentially resulting in a significant loss of scale and compromising the industry鈥檚 ability to sustain the current levels of R&D and capital intensity.

To address supply chain vulnerabilities, 91成人鈥檚 comments call on government to:

• enact targeted federal investments in domestic semiconductor manufacturing and research;
• guarantee a level global playing field, as well as strong protection of IP rights;
• promote global trade and international collaboration on R&D and technology standards, particularly with allied countries;
• step up efforts to address the shortage of talent through further investment in science and engineering education, as well as immigration policies that enable leading global semiconductor clusters to attract world-class talent; and
• establish a clear, stable, and targeted framework for any controls on semiconductors that avoid broad unilateral restrictions on technologies and vendors while establishing market incentives for more assured sources for our military and critical infrastructure needs.

These vulnerabilities and required government actions to address them are also highlighted in a new study by 91成人 and the Boston Consulting Group, titled 鈥�Strengthening the Global Semiconductor Supply Chain in an Uncertain Era.鈥�

The聽share of global聽semiconductor manufacturing聽capacity in the U.S. has聽decreased聽from 37% in 1990 to 12% today. This聽decline聽is largely聽due to substantial subsidies offered by the governments of our global competitors, placing聽the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or 鈥渇abs.鈥澛燗dditionally, federal investment聽in semiconductor research聽has been聽flat聽as a share of GDP,聽while聽other governments聽have invested substantially in research initiatives to strengthen their own semiconductor capabilities.

Recognizing the critical role semiconductors play in America鈥檚 future, Congress in January enacted聽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 must be provided to make these provisions a reality.

In February, the 91成人 board of directors 鈥� and later a broad coalition of business leaders led by 91成人 鈥撀燾alled on聽President Biden to work with Congress to fund the semiconductor manufacturing incentives and research initiatives as part of his infrastructure plan.

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91成人 91成人
The 91成人 (91成人) is the voice of the semiconductor industry, one of America鈥檚 top export industries and a key driver of America鈥檚 economic strength, national security, and global competitiveness. Semiconductors 鈥� the tiny chips that enable modern technologies 鈥� power incredible products and services that have transformed our lives and our economy. The semiconductor industry directly employs nearly a quarter of a million workers in the United States, and U.S. semiconductor company sales totaled $208 billion in 2020. 91成人 represents 98% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, 91成人 seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at聽www.semiconductors.org.