Texas Semiconductor Technologies

President Biden’s Infrastructure Plan Would Strengthen U.S. Leadership in Semiconductors

Wednesday, Mar 31, 2021, 9:15am

by Semiconductor Industry Association

WASHINGTON—March 31, 2021—The Semiconductor Industry Association (SIA) released the following statement from President and CEO John Neuffer regarding President Biden’s infrastructure proposal, which would invest in domestic semiconductor manufacturing, research, and workforce development.

“The President’s plan would invest ambitiously in U.S. semiconductor workers, manufacturing, and innovation – three cornerstones of America’s strength and its future. Semiconductors are foundational to America’s economy and job creation, national security, and critical infrastructure. We applaud the President’s leadership on this issue and look forward to working with the Administration and Congress to promote America’s global competitiveness in semiconductors and the many essential technologies they enable, while also ensuring a globally competitive corporate tax system.”

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 in January 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 must be provided to make these provisions a reality.

Last month, the SIA board of directors – and later a broad coalition of business leaders led by SIA – called on President Biden to work with Congress to fund the semiconductor manufacturing incentives and research initiatives as part of his infrastructure plan.