April 05, 2021

WASHINGTON, DC — In comments submitted today to the U.S. Department of Commerce, global tech trade association ITI urged the Biden-Harris Administration and U.S. Congress to provide robust incentives to enhance the semiconductor ecosystem in the United States to drive U.S. competitiveness and bolster national security. Such investments will boost domestic production of semiconductors and address long-term supply concerns, and promote U.S. leadership in designing and producing increasingly complex state-of-the-art semiconductor components. ITI’s comments were submitted in response to the administration’s request for public comment on Risks in the Semiconductor Manufacturing and Advanced Packaging Supply Chain.

“ITI and its members strongly believe that for the U.S. to maintain its technology leadership and a strong skilled technology development and advanced manufacturing workforce, we must make investments to strengthen and diversify the semiconductor supply chain, in particular by building U.S. manufacturing capacity,” ITI wrote in its comments.

“Revitalizing high-tech manufacturing of semiconductors in the United States has the potential to drive innovation across many different sectors for decades to come. Investing in large-scale missions—like ushering in a silicon manufacturing renaissance—would restore American leadership in advanced manufacturing, secure these vital supply chains, grow well-paying jobs, and ensure our technological long-term national security and economic competitiveness.”

ITI’s comments include comprehensive recommendations for strengthening U.S. semiconductor leadership and ensuring a resilient supply chain, including:

  • Providing incentives to enhance the U.S. semiconductor ecosystem through funding for the CHIPS for America Act to increase semiconductor manufacturing capacity for both leading edge and mature nodes, and to increase semiconductor R&D funding and prototyping. Such effort should remain open for all multi-national chip manufacturers that meet the required standards and guidelines;
  • Encouraging investments through tax policy including investment tax credits to further incentivize building new and modernizing semiconductor facilities in the U.S., as well as preserving the ability to deduct R&D expenses and expand the Advanced Research Credit (ARC) related investments;
  • Supporting semiconductor R&D through innovation-forward economic policies that open markets to U.S. sales overseas to ensure continued R&D funding and market leadership;
  • Strengthening the U.S. technology workforce through STEM education initiatives and immigration reforms and measures that help prepare the domestic workforce;
  • Enhancing cooperation with global partners via bilateral, regional, and multilateral engagement to ensure regulatory compatibility and reduce barriers to trade;
  • Addressing unfair Chinese trade practices by building upon existing U.S. workstreams to address expansive Chinese government subsidies and unfair trade practices; and
  • Strengthening public-private partnerships to develop a coherent, streamlined, and effective long-term approach to address ICT supply chain security and resilience issues, including those related to the semiconductor supply chain.

Read ITI’s full comments here.

Public Policy Tags: National Security, Supply Chain