The Provisions Of The Chips Act Have Been Designed To Restore American Leadership In This Crucial Industry.
A Group Of US Semiconductor Consumers And Producers Has Formed An Alliance To Push For Funding Of The Chips For America Act To Avert Future Supply Shortages And Support Innovation.
In a letter sent to congress today, the newly formed Semiconductors in America Coalition (SIAC), which includes Amazon, Apple, Google, and chipmakers Intel, IBM and Qualcomm said: “The current shortage of semiconductors is impacting a broad range of industries. In the short term, government should refrain from intervening as industry works to correct the supply-demand imbalance. But for the longer term funding of the Chips Act would help America build the additional capacity necessary to have more resilient supply chains to ensure critical technologies will be there when we need them.”
The bipartisan Chips (creating helpful incentives for the production of semiconductors) for America Act was enacted by Congress in January as part of the 2021 National Defense Authorization Act and has received support from President Joe Biden. But the legislation has not yet received any funding. Funding could also be considered as part of the bipartisan Endless Frontier Act introduced last month, which will be debated and revised by the Senate Commerce Committee tomorrow, according to the SIAC.
The provisions of the Chips for America Act include a 40pc investment tax credit for semiconductor equipment and facilities expenditure in the US and $10bn in WTO compliant grants to match the incentives offered to semiconductor manufacturers in other countries. And $7bn over five years for semiconductor research and the creation of a National Semiconductor Technology Center.
“For decades, the US and its enterprises were the undisputed leader in semiconductor innovation and technology, but that lead has begun to wane in the face of increasing global competition. The Provisions Of The Chips Act Have Been Designed To Restore American Leadership In This Crucial Industry,” Washington-based think-tank ITIF vice-president Stephen Ezell said.
This news was originally published at Argus Media.