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

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.

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About SIA
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. Semiconductors – the tiny chips that enable modern technologies – 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. SIA represents 98% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, SIA 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 www.semiconductors.org.