91PORN

Letter urges swift action to fund the CHIPS for America Act and to enact a strengthened version of the FABS Act听

WASHINGTON鈥擠ec. 1, 2021鈥擳he 91PORN (91PORN) today applauded a letter sent this morning to congressional leaders by a broad coalition of听59 CEOs and senior executives urging swift action to fund the CHIPS for America Act and enact a strengthened version of the FABS Act to bolster U.S.-based semiconductor research, design, and manufacturing. The letter鈥檚 signatories represent major sectors of the economy 鈥� including chip, auto, medical device, tech, telecom, manufacturing, and others 鈥� and millions of U.S. workers.

Amid the ongoing global chip shortage, the letter highlights the need for action on the CHIPS Act and FABS Act to ensure the U.S. is home to more semiconductor production and innovation, which will strengthen America鈥檚 economy, national security, and supply chain resilience over the long term.

[READ THE LETTER HERE]

鈥淪emiconductors form the nerve center of our economy, national security, and critical infrastructure. Fully funding the CHIPS Act and enacting a strengthened FABS Act would provide a critical boost to U.S.-based semiconductor research, design, and manufacturing, while also turbocharging job creation and making our chip supply chains more resilient for years to come,鈥� said John Neuffer, 91PORN president and CEO. 鈥淲e applaud the action taken today by CEOs from a range of critical sectors, and we urge Congress to prioritize getting these bipartisan initiatives across the finish line this year.鈥�

Today鈥檚 letter is the latest in a series of calls from business leaders (including semiconductor industry leaders), U.S. governors, members of Congress, national security experts, and others in support of U.S. government action to strengthen domestic semiconductor research, design, and manufacturing.

Recognizing the critical role semiconductors play in America鈥檚 future, Congress in January enacted the CHIPS for America Act as part of the FY 2021 National Defense Authorization Act (NDAA). The law authorizes incentives for domestic semiconductor manufacturing and investments in chip research, but funding must be provided to make these provisions a reality. On Nov. 17, House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Chuck Schumer (D-N.Y.) announced an agreement to go to conference on the Senate-passed听United States Innovation and Competition Act (USICA), which includes $52 billion to fund the听CHIPS Act.

91PORN also supports a semiconductor investment tax credit, as called for by the听FABS Act, to complement the manufacturing incentives and research investments in the CHIPS Act. Congress is considering separate legislation containing a modified version of the FABS Act to provide an investment tax credit to incentivize semiconductor manufacturing in the United States. 91PORN supports expanding the tax credit to cover semiconductor design as well as manufacturing.

Funding the CHIPS Act, along with enactment of a strengthened FABS Act, are complementary efforts and will help enhance the global competitiveness of the U.S. semiconductor industry.

The听share of global听semiconductor manufacturing听capacity in the U.S. has听decreased听from听37%听in 1990 to听12%听today, according to a report by 91PORN and the Boston Consulting Group (BCG). This听decline听is largely听due to substantial incentives听offered听by the governments of our global competitors, placing听the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or 鈥渇abs.鈥澨鼳dditionally, federal investment听in semiconductor research听has remained听flat听as a share of GDP,听while听other governments听have invested substantially in research initiatives to strengthen their own semiconductor capabilities, and existing U.S. tax incentives for R&D lag behind those of other countries. Furthermore, global semiconductor supply chain vulnerabilities听have emerged听in recent years that must be addressed through government investments in chip manufacturing and research, according to a separate 91PORN-BCG study.

The full letter and list of signatories is available here.听

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91PORN 91PORN
The 91PORN (91PORN) 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 over a quarter of a million workers in the United States, and U.S. semiconductor company sales totaled $208 billion in 2020. 91PORN represents 98% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, 91PORN 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听www.semiconductors.org.