Who are the key supporters of the CHIPS Act?
10/12/2021 by MRL
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We’ve recently published a piece explaining what the CHIPS Act is and what it could mean for semiconductor companies in the USA if pushed through and funding is made available.
While the House of Representatives has stalled the Act, many supporters are actively trying to push things forward. Let’s review who they are and how they are supporting the Act:
This coalition comprises USA-based semiconductor producers and consumers working together to get funding for the Act approved. Some well-known names active in this group include Amazon, Apple, Google, IMB, Intel and Qualcomm.
On the 11th of May, SIAC sent a letter to Congress advising that the government ‘refrain from intervening’ as the industry strives to correct the chip supply and demand imbalance.
However, this was followed by a call for longer-term funding from the CHIPS Act to help the US ‘build the additional capacity necessary to have more resilient supply chains” that will make critical tech available when needed.
From the Whitehouse itself, Peter Harrell is also lobbying to get the legislation passed as swiftly as possible. On the subject, he has stated: “We have to get it passed...and we are certainly from our perspective keeping up the pressure on Congress to get it passed.”
The Senior Director of International Economics and Competitiveness aims to get the Act pushed through before the end of the year.
The SIA, in which Dr Su is involved, is an association between ‘fierce competitors,’ providing a space for collaboration to solve some of the most significant challenges facing the semiconductor industry.
The SIA has a dedicated page on their website discussing the CHIPS For America Act and the FABS Act. They provide an overview of the situation and request the House of Representatives to send the Act to President Joe Biden to sign into law.
The association states that implementation of the CHIPS and FABS Acts will:
Result in a historic resurgence of chip manufacturing in America,
Strengthen the US’s most critical industries,
Boost domestic chip R&D,
And help ensure the US is a leader of chip-enabled technologies.
The Commerce Secretary has recently completed a whistle-stop tour to increase momentum for the CHIPS Act.
When speaking at the Economic Club of Detroit, she pressed for the legislation to be passed, stating: “We can’t wait because the rest of the world isn’t waiting...We need the House to pass the Chips Act immediately because the stakes are just that high.” Attendees of the Economic Club of Detroit included Ford, Motor Co. and Stellantis NV.
Gina Raimondo has also led a recent roundtable with Michigan Democrats to discuss semiconductors. Attendees included Senators Gary Peters and Debbie Stabenow and Debbie Dingell, Rashida Tlaib and Dan Kildee, who are Representatives.
Earlier this month, 52 leading chip and computing executives from American semiconductor companies called for prompt action in funding the CHIPS Act. Signees included Apple’s CEO, Tim Cook, SkyWater Technology’s President and CEO, Thomas Sonderman, and Alphabet’s CEO, Sundar Pichai.
The letter identified that the CHIPS and FABS Act would assist in conquering the long-term challenge of chip supply instability.
The CHIPS Act will provide $52 billion to be utilised for domestic semiconductor production, offering incentives to establish manufacturing facilities in the US. Chip assembly in the US currently makes up 12% of global production. Back in the 1990s, this was 40%.
While the US may look weak regarding actual production, they are exceptionally strong in other sectors within the semiconductor industry, including design, equipment and automation.
This Act will plug a huge gap in the USA’s foothold in the industry, undoubtedly creating more job opportunities for skilled individuals and will also mitigate problems heightened by the recent semiconductor shortage.
MRL’s semiconductor recruiters pride themselves on keeping up to date on news and movements. So check back regularly for the latest updates.