UPDATE A bipartisan group of more than 70 House and Senate members called on President Joe Biden to support funds for semiconductor R&D and manufacturing in the U.S. The action happened as the president hosted a meeting with technology leaders including AT&T and Samsung on Monday to discuss the global semiconductor shortage impacting the telecom and auto industries.
Sen. John Cornyn (R-TX) spearheaded the group. The legislators asked that Biden work to fund initiatives for semiconductors specified by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, signed into law as part of the FY21 national Defense Authorization Act.
The lawmakers noted the need to compete with China. In a letter, they wrote: “We would specifically request you consider joining us in support of funding levels that are at least the authorized amounts proposed in the original bill as you work with Congress on a package of policies to better compete with China and how best to strengthen our country’s economic competitiveness and resiliency as well as national security.”
They cited concerns such as keeping up with China on semiconductor manufacturing, saying the need to do so is a “national security priority.”
“The Chinese Communist Party (CCP) has aggressive plans to reorient and dominate the semiconductor supply chain, pouring over $150 billion in semiconductor manufacturing subsidies and investing $1.4 trillion in their efforts to become the dominant global technological power,” the group wrote to Biden. “Even full funding of the originally filed CHIPS provisions pales in comparison to the investments being made by the CCP, which speaks to why consideration of an even higher level of funding is worthwhile.”
The lawmakers also asked that Biden include funds for semiconductor research and manufacturing in the annual budget proposal to enable federal agencies to support the effort to boost chip production.
Biden addressed the letter during remarks after Monday’s meeting, stressing that “China and the rest of the world is not waiting, and there’s no reason why Americans should wait. We’re investing aggressively in areas like semiconductors and batteries. That’s what they’re doing and others; so must we,” he said, reported The Hill.
Biden noted that he’s seeking a “significant” $50 billion investment in semiconductor initiatives in the CHIPS for America Act as part of the package. “For too long as a nation, we haven’t been making the big, bold investments we need to outpace our global competitors,” he said. “We’ve been falling behind on research and development and manufacturing, and to put it bluntly, we have to step up our game.”
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