US Semiconductor Industry to Lobby for Subsidies, Chip Factory, Report Says

The U.S. semiconductor industry is preparing to lobby for billions of dollars in federal funding amid growing U.S. technology competition with China, according to a May 31 report in The Wall Street Journal. The lobbying efforts, outlined in a $37 billion draft proposal by the Semiconductor Industry Association, includes funding for a new U.S. chip factory and increased research subsidies, the report said. The SIA declined to comment.

The report comes about two weeks after the U.S. announced a deal with the Taiwan Semiconductor Manufacturing Corporation to build an Arizona-based factory (see 2005150033), which U.S. lawmakers fear could disadvantage the U.S. semiconductor industry (see 2005200030). The U.S. also recently announced increased export license requirements for certain foreign exports to Huawei, which could damage U.S. industry (see 2005270030).

The SIA recently issued a statement applauding a bill unveiled in May that aims to increase U.S. investment in technology, research and high-tech manufacturing. The Endless Frontier Act -- led by Sens. Todd Young, R-Ind., and Chuck Schumer, D-N.Y., and Reps. Ro Khanna, D-Calif., and Mike Gallagher, R-Wisc. -- states that “global competitors” will “overtake” U.S. technology leadership “without a significant increase in [U.S.] investment” in technology research. Among other changes, the bill would establish a U.S. “Technology Directorate” to “advance technology in 10 critical focus areas,” according to a press release. The directorate would receive $100 billion over five years to “lead investment” in emerging technologies.

The U.S. should take “prompt action” to pass the legislation, the SIA said in its May 27 statement. “America’s leadership in scientific and technological innovation has been a source of economic strength and a contributor to our national security. But this leadership is at risk,” the group said, adding that the industry needs a “significant increase in research funding.”