Following Senator Charles E. Schumer’s unveiling of his bipartisan American Foundries Act and major push to bolster U.S. leadership in the microelectronics sector, Schumer and U.S. Senator Kirsten Gillibrand today announced the Fiscal Year 2021 National Defense Authorization Act (NDAA) includes their provision to reestablish U.S. leadership and revitalize innovation in the global microelectronics sector.
The senators explained that the bipartisan legislation increase federal investment into semiconductor manufacturing by providing new federal incentives to conduct advanced research and development of semiconductor technology, secure the supply chain, and ensure national and economic security by reducing reliance on foreign semiconductor manufacturing.
The amendment passed in the Senate 96-4 yesterday, and the legislation included in the final NDAA, which is expected to be put to a final vote in the Senate in coming days, will provide unprecedented support for the U.S. semiconductor industry.
“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and Upstate New York, which has a robust semiconductor sector, is the perfect place to grow this industry by leaps and bounds,” Senator Schumer said.
“America must continue to invest in our domestic semiconductor industry in order to keep good-paying, high-tech American manufacturing jobs here in Upstate New York. We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs.
"This is essential to our national security and to U.S. leadership in this critical industry. I’m pleased to deliver this win in this year’s final NDAA for Upstate New York and the entire country."
“Our nation is in an economic crisis. Investing in microelectronics manufacturing and the semiconductor industry will create high paying manufacturing jobs for hard working Americans at a time when our country needs it most,” Senator Gillibrand said.
“This amendment will help expand our advanced manufacturing workforce in Upstate New York and invest in cutting edge research and development. I’m proud that this legislation is included in NDAA so that we can continue to strengthen our microelectronic domestic supply chain, prioritize American-owned businesses over foreign production, and keep our country safe.”
The senators noted that even though the United States revolutionized the microelectronic industry and invented nearly all of the key technology used to this day, competitors in Asia, especially China, have made huge investments into their microelectronics industries in recent years to challenge and undercut U.S. leadership.
In fact, Schumer and Gillibrand pointed out, the United States has gone from producing 24 percent of the world’s semiconductors in 2000, to just 12 percent more recently. In contrast, China has gone from producing zero chips to 16 percent of the world’s supply in the same time frame.
The senators warned that by 2030, Asia is projected to control 83 percent of the global semiconductor manufacturing supply while domestic production could be less than 10 percent, threatening U.S. reliance on foreign-made microelectronics, which could pose huge risks to U.S. national and economic security.
Schumer has long-championed increased efforts to expand the domestic microelectronics industry, supporting companies like GlobalFoundries, which houses their most advanced "Fab 8" manufacturing facility in Malta, New York, IBM, and others.
With New York home to multiple major companies and research institutions in the semiconductor industry, the state is positioned to securely supply the U.S. government with critical technologies and maintain U.S. leadership in this technology. This is a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the U.S. reduce its reliance on foreign semiconductor manufacturing.
Specifically, supporters of the amendment include: GlobalFoundries; IBM; ON Semiconductor; Cree Inc.; the Genesee County Economic Development Center; Hudson Valley Economic Development Corporation; Mohawk Valley EDGE; Cornell University; Binghamton University; and SUNY Polytechnic Institute.
“Senator Schumer has been a longtime champion of New York's 1,250-acre STAMP megasite in Genesee County and this legislation provides a tremendous opportunity to create thousands of high-quality semiconductor jobs for the Western New York and Finger Lakes regions," said Steve Hyde, president and CEO of the Genesee County Economic Development Center (GCEDC). "In short, STAMP* is a transformative economic development game-changer that will generate billions of dollars of economic activity across Upstate New York.
"We appreciate Senators Schumer and Gillibrand’s push to pass this milestone legislation that advances our site, region, and New York's readiness as we compete globally for projects of this scale.”
*STAMP: Western New York Science and Technology Advanced Manufacturing Park in Alabama.
Details on the NDAA Amendment are below:
- Directs the Secretary of Commerce to create a grant program for constructing, expanding, or modernizing commercial semiconductor fabrication, assembly, testing, packaging, and advanced R&D facilities in the United States.
- Directs the Secretary of Defense to create a partnership program with the private sector to encourage the development of advanced, measurably secure microelectronics for use by the Department of Defense, Intelligence Community, critical infrastructure, and other national-security applications.
- Requires the Secretary of Commerce to commence a review within 120 days assessing the state of the U.S. semiconductor industrial base.
- Establishes a Multilateral Microelectronics Security Fund, with which the United States, its allies and partners will work to reach agreements promoting consistency in their policies related to microelectronics, greater transparency including supply chains, and greater alignment in export control and foreign direct investment policies.
- Directs the president to establish a subcommittee on semiconductor technology and innovation within the National Science and Technology Council, directs the Secretary of Commerce to establish a national semiconductor technology center to conduct research, fund semiconductor startups and a Manufacturing USA Institute, create a National Advance Packaging Manufacturing Program, and encourage the Secretary of Labor to work with the private sector on workforce training and apprenticeships in semiconductor manufacturing.