Some of the world’s biggest chip buyers — including Apple, Microsoft, and Google — are joining top chip-makers such as Intel to create a new lobbying group — the Semiconductors in America Coalition — to press for government chip manufacturing subsidies, reports Reuters.
The coalition is lobbying the U.S.government to fund the CHIPS for America Act which aims to provide US$50 billion for chip manufacturing.
The act includes a range of federal investments to advance U.S. semiconductor manufacturing, including $10 billion for a new federal grant program that would incentivize new domestic semiconductor manufacturing facilities. The bill also includes a refundable investment tax credit for the purchase of new semiconductor manufacturing equipment and other facility investments.
“Robust funding of the CHIPS Act would help America build the additional capacity necessary to have more resilient supply chains to ensure critical technologies will be there when we need them,” said a letter sent by the coalition to Democratic and Republican leaders in the House of Representatives and the Senate. However, the lobbying group adds that the “government should refrain from intervening as industry works to correct the current supply-demand imbalance causing the shortage.”
In February 2021, the coalition posted a letter urging President Biden to work with Congress to fully fund domestic semiconductor manufacturing and research provisions established in the recently enacted National Defense Authorization Act (NDAA). The coalition letter describes strengthening the U.S. position in semiconductor research, design, and manufacturing as a national priority, given semiconductors’ critical role in driving America’s economy, job creation, innovation, and national security.
“President Biden and Congress have an historic opportunity to invest boldly in domestic semiconductor manufacturing incentives and research initiatives to turbocharge American innovation and ensure the long-term strength of U.S. economic growth, job creation, national security, and this country’s chip supply chains,” said John Neuffer, SIA president and CEO. “We are pleased to join with leaders in a range of key tech, medical, automotive sectors, as well as broad business and manufacturing groups, to urge the president to prioritize investments in chip technology as part of the administration’s recovery and infrastructure proposal.”
By enacting the CHIPS for America Act in the FY 2021 National Defense Authorization Act (NDAA), Congress recognized the critical role the U.S. semiconductor industry plays in America’s future. Now, SIA and the broad coalition signing the letter call on the administration and Congress to fully fund the provisions authorized by the NDAA and to enact an investment tax credit.
NDAA is the name for each of a series of United States federal laws specifying the annual budget and expenditures of the U.S. Department of Defense. The first NDAA was passed in 1961.
