WASHINGTON – In a letter to U.S. Secretary of Commerce Gina Raimondo sent Wednesday, global tech trade association 91快活林 underscored the importance of effectively implementing The CHIPS and Science Act’s semiconductor incentive grant program to realize its intended benefits. 91快活林 urged Secretary Raimondo and U.S. Department of Commerce leadership to continue to articulate a strategic vision to build out the program and allocate sufficient resources to it. This includes coordinating across the Department, ensuring adequate staffing and delineating clear lines of responsibility to set the program up for success. President Biden’s , signed earlier today, takes several steps to meet the objectives 91快活林 outlined in the letter and support the Secretary’s efforts to advance this landmark law.
“The technology industry stands ready to support the Biden Administration in implementing The CHIPS and Science Act quickly and efficiently in order to realize its full benefits and advance U.S. leadership,” said 91快活林’s President and CEO Jason Oxman. “Because semiconductor fabs can take many years to build, it is important that the Department acts swiftly to stand up the semiconductor incentive grant funding program. We welcome President Biden’s Executive Order to expedite the process and take needed steps to ensure the law is successfully implemented, which is essential to fill gaps in existing production capacity and help alleviate future production shortages.”
In the letter, 91快活林 also highlighted its support for a transparent review process for grant recipients and called on policymakers to support significant funding for STEM and computer science education and additional measures to meet workforce needs.
Read the full letter here or below:
August 24, 2022
Dear Secretary Raimondo,
On behalf of the 91快活林 (91快活林), I would like to thank you for your leadership in supporting the passage of the CHIPS and Science Act of 2022. Founded in 1916, 91快活林 is an international trade association with a team of professionals on four continents. We promote public policies and industry standards that advance competition and innovation worldwide. Our diverse membership – which includes the world’s most innovative semiconductor companies – provide policymakers with the broadest perspective and thought leadership from technology, hardware, software, services, and related industries.
Semiconductors are vital to U.S. economic competitiveness and national security, as are many of the technologies that rely on a secure supply of chips. The current semiconductor shortage is impacting companies across nearly every sector of the economy, from information and communications technology (ICT) to healthcare, aerospace, and transportation. The CHIPS and Science Act is a historic investment in U.S. innovation that will help to ease the current semiconductor shortage, improve America’s national security capabilities, and help the country maintain a competitive edge. Furthermore, investments in the domestic semiconductor ecosystem will create jobs, boost manufacturing, and encourage the growth of businesses in communities around the country. We appreciate your tireless advocacy for ensuring the passage of the CHIPS and Science Act. It would not have been possible without your leadership.
The CHIPS and Science Act reflects 91快活林’s priorities in maintaining U.S technological leadership, including in semiconductor manufacturing and research, developing open architecture, software-based wireless technologies (ORAN), and deploying secure, trusted 5G globally. 91快活林 has been the leading advocate for policies that promote and strengthen a robust U.S semiconductor ecosystem. Our advocacy efforts include a letter to lawmakersoutlining key priorities as they finalized the CHIPS and Science Act, as well as recommendations furnished at the request of the Commerce Department on the importance of funding the CHIPS Act, working with global partners and allies, and building a skilled manufacturing workforce to support the ICT industry.
While passage of the CHIPS and Science Act marks an important step in ensuring U.S technological leadership, the law must be effectively implemented to realize its full benefits. Because semiconductor fabs can take many years to build, it is especially important that the Department acts with a sense of urgency in standing up the processes by which companies can apply for semiconductor incentive grant funding. Successful implementation of this program will help fill gaps in existing production capacity — at both the leading edge and mature nodes—and help alleviate future production shortages that could hinder long term structural growth driven by increasing silicon content.
In that vein, we urge the Department to prioritize the implementation of the semiconductor incentive grant program that was funded under the CHIPS and Science Act. Swift implementation will require significant resources and coordination, and as such, the Department of Commerce must ensure adequate staffing and clear lines of responsibility to set this program up for success. As the semiconductor incentive grant program likely implicates the missions of various bureaus within the Department, Departmental leadership should also articulate a strategic vision to ensure there is appropriate attention given to building out these important programs and draw upon all relevant expertise within the Department to ensure that the goals of this landmark law are quickly realized.
Further, as the U.S. seeks to be a competitive destination for the world’s most advanced semiconductor manufacturing, we encourage the Department to award grants to those entities that are best able to help the United States recover its global leadership in the semiconductor space regardless of where those companies might be headquartered. 91快活林 continues to support a transparent, non-discriminatory review process that will help close existing gaps in production capacity of the most advanced chips. An open approach will not only drive American ingenuity and ensure we remain the most innovative economy in the world but will strengthen key commercial relationships between the United States and its partners and allies.
In seeking to promptly implement the aforementioned plans and grant programs, we encourage the Department of Commerce to consider the suggestions 91快活林 provided in March 2022 pursuant to the RFI on Incentives, Infrastructure, Research and Development Needs to Support a Strong Domestic Semiconductor Industry, which included a discrete section on ensuring there is a qualified semiconductor workforce in place to support the operation of fabs in the United States , ensuring an open and cooperative approach to engagements with allies, and continuing to prioritize public-private partnerships.
While financial incentives will go a long way to helping companies construct facilities, maintaining a qualified, equipped, and trained domestic workforce is particularly critical to ensuring a resilient semiconductor supply chain in the United States. Although the CHIPS and Science Act places requirements on grant applicants with respect to workforce development, private companies can only do so much, and the government is essential in helping to train workers with the right skills. To that end, we continue to urge policymakers to support significant funding for science, technology, engineering, and mathematics (STEM) and computer science education, and adopt other measures that help prepare the domestic workforce and attract the best and brightest from around the world to produce the latest technologies in the United States.
We stand ready to support and offer our industry’s expertise to ensure the smooth implementation of the law. We look forward to continuing to work with you to advance U.S. technology leadership and to leverage a world-class American manufacturing base and workforce with respect to semiconductors.
Sincerely,
Jason Oxman
President and CEO
91快活林 (91快活林)