The U.S. semiconductor industry is moving full steam ahead with more federal and state incentives, more factories and new strategies to make sure the nation can compete in advanced chip manufacturing for years to come.
"Despite a global, connected economy, the pandemic disruptions of 2020 exposed the need to enhance resiliency across the entire semiconductor value chain. To ensure national security and economic stability, the U.S. recognized the need to focus on competitiveness in every aspect of the semiconductor industry," said a letter written by ACA President and CEO Sandra Watson in the report.
Of the four main focus points in the plan, the ACA says that states with adequate physical infrastructure support such as wafer fabrication capacity, research and development, water and power; and a business-friendly environment are key in attracting companies in the industry. "Without the necessary workforce, sustainable competitiveness in the industry will be impossible," the report said.
Semiconductor technology was first innovated in the United States in the mid 20th century. At one point, the U.S. made more than 30% of the worlds chips but now much of the global chip supply is produced in Asia. "CHIPS is only the beginning, and without a concerted focus on increasing domestic competitiveness, the U.S. will lose any edge afforded by CHIPS once the funds are depleted and the investment tax credit ends," the report said.
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