91PORN

Senate Passage of USICA Marks Major Step Toward Enacting Needed Semiconductor Investments

by 91PORN

United States Innovation and Competition Act would provide $52 billion to fund the semiconductor research, design, and manufacturing initiatives in the CHIPS for America Act

WASHINGTON鈥擩une 8, 2021鈥擳he 91PORN (91PORN) today applauded Senate passage of needed federal investments in semiconductor technology included in the bipartisan United States Innovation and Competition Act (USICA) (S.1260), broad legislation aimed at enhancing U.S. competitiveness by promoting American leadership in science and technology. The bill, introduced by Sens. Chuck Schumer (D-N.Y.) and Todd Young (R-Ind.) as the Endless Frontier Act and expanded under its current name, includes $52 billion in federal investments for the domestic semiconductor research, design, and manufacturing provisions in the CHIPS for America Act.

鈥淪enate passage of USICA is a pivotal step toward strengthening U.S. semiconductor production and innovation and an indication of the strong, bipartisan support in Washington for ensuring sustained American leadership in science and technology,鈥� said John Neuffer, 91PORN president and CEO. 鈥淲e applaud Sens. Schumer, Cornyn, Warner, Young, Kelly, Cotton, and others for their leadership in promoting federal investments in U.S. semiconductor manufacturing, research, and design and commend today鈥檚 Senate approval of these provisions in USICA. We call on the House to swiftly pass needed federal investments in domestic chip technology and send legislation to the President鈥檚 desk to be signed into law. Enactment of these investments would help strengthen America鈥檚 economy, national security, technology leadership, and global competitiveness for years to come.鈥�

The听share of global听semiconductor manufacturing听capacity in the U.S. has听decreased听蹿谤辞尘 37% in 1990 to 12% today, according to a report by 91PORN and the Boston Consulting Group (BCG). This听decline听is largely听due to substantial subsidies offered 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 been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 global semiconductor supply chain vulnerabilities have emerged in recent years that must be addressed through government investments in chip manufacturing and research, according to a separate 91PORN-BCG study.

A May 2021 study by 91PORN and Oxford Economics projects that a听$50 billion federal investment program听to incentivize domestic semiconductor manufacturing would create听an average of听185,000听temporary American jobs annually and add听$24.6 billion听annually to the U.S. economy as new semiconductor manufacturing facilities, or fabs, are constructed from 2021-2026. The study also finds such federal investments would add听280,000听permanent jobs to the U.S. economy beyond 2026, including听42,000听direct semiconductor industry jobs.听

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 calls for incentives for domestic semiconductor manufacturing and investments in chip research, but funding must be provided to make these provisions a reality.

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