‘Federal Investment’ Needed to Boost Chip Supply Chain: ITI

Revitalizing U.S. semiconductor manufacturing and R&D could “drive innovation across many different sectors for decades,” the Information Technology Industry Council told the Commerce Department’s Bureau of Industry and Security. Comments due Monday in docket BIS-2021-0011 will help shape recommendations to the White House on President Joe Biden’s Feb. 24 executive order to relieve bottlenecks (see 2103110054). For the U.S. semiconductor industry to remain competitive and to strengthen the resilience of critical semiconductor supply chains, the administration “should prioritize incentivizing research, development, prototyping, and manufacturing of advanced semiconductors” domestically, said ITI. “Federal investment and incentives to boost domestic semiconductor manufacturing will level the capital expenditure playing field ... enabling firms to build new or expand existing manufacturing capacity in the U.S versus other locations where governments heavily subsidize semiconductor manufacturing infrastructure.” Promoting such financial incentives is “the single most important action” the U.S. can take “to strengthen these critical supply chains,” said ITI. “Augmenting domestic production of semiconductors, coupled with ensuring the continuity of necessary global supply chains, would make America’s semiconductor supply chains more resilient to future crises and ensure the U.S. can supply the advanced chips needed.”