Semiconductor Industry Applauds NDAA Enactment, Urges Full Funding for Semiconductor Manufacturing and Research Provisions

by Semiconductor Industry Association

WASHINGTON—Jan. 1, 2021—The Semiconductor Industry Association (SIA) today applauded Congress for enacting the National Defense Authorization Act (NDAA), legislation that includes Title XCIX, “Creating Helpful Incentives to Produce Semiconductors for America,” which authorizes federal incentives to promote semiconductor manufacturing and federal investments in semiconductor research. SIA represents 98 percent of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

“Enactment of the NDAA will help propel U.S. economic growth and cement America’s position at the forefront of semiconductor innovation, which is critical to the game-changing technologies of today and the future,” said Bob Bruggeworth, President, CEO, and Director of Qorvo and SIA Chair. “The next step is for leaders in Washington to fully fund the NDAA’s domestic chip manufacturing incentives and research initiatives. Doing so will make America one of the world’s most attractive places to produce this foundational technology.”

The provisions authorized by the NDAA must still be funded through appropriations made by Congress. SIA and the Boston Consulting Group released a study in September finding robust federal incentives for domestic semiconductor manufacturing would reverse the decades-long trajectory of declining chip production in America and create as many as 19 major semiconductor manufacturing facilities, or fabs, and 70,000 high-paying jobs in the U.S. over the next 10 years. A separate SIA report released in June found federal funding for semiconductor research generates an outstanding return on investment for taxpayers, with each additional dollar invested adding $16.50 to U.S. gross domestic product.

“The semiconductor provisions in the NDAA will strengthen the U.S. economy, our national security, and our leadership in chips and the many technologies they enable,” said John Neuffer, SIA president and CEO. “We applaud the leadership and dedication of the provisions’ champions in Congress, a bipartisan group led by Sens. Cornyn, Warner, Cotton, and Schumer in the Senate and Reps. Matsui and McCaul in the House. Now it’s critical for leaders in Washington to put these provisions into action by fully funding them, and we stand ready to work with policymakers to make that a reality.”

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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 $193 billion in 2019. represents 98 percent 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.