A Group of U.S. Senators are close to unveiling a $52 Billion Proposal to Significantly Boost U.S. Semiconductor Production
Earlier today we posted a report about Apple's TSMC joining 65 major industry players joining the newly formed "Semiconductors in America Coalition" that Apple joined on Tuesday. Alex Capri, a professor at the National University of Singapore was quoted as saying that TSMC's investment in a 5nm process fab in the US would increase pressure on Beijing because TSMC is clearly not doing the same thing in China to boost their chip industry.
Reuters is now reporting that a group of U.S. senators are very close to unveiling a $52-billion proposal Friday that would significantly boost U.S. semiconductor chip production and research over five years.
Senators Mark Kelly, John Cornyn, Mark Warner and Tom Cotton have been negotiating a compromise measure to address the issue in the face of rising Chinese semiconductor production and shortages impacting automakers and other U.S. industries.
The chips funding is expected to be included in a bill the Senate will take up next week to spend more than $110 billion on basic U.S. and advanced technology research to better compete with China.
The proposal includes $49.5 billion in emergency supplemental appropriations to fund the chip provisions that were included in this year’s National Defense Authorization Act, but which require a separate process to garner funding, according to a draft summary seen by Reuters.
It was revealed yesterday that the Senate will take up the technology bill known as the Endless Frontier Act next week in a package of legislation that would include efforts to "invest in the American semiconductor industry, ensure that China pays a price for its predatory actions, and boost advanced manufacturing, innovation, and critical supply chains."
Supporters of funding note the U.S. had a 37% share of semiconductors and microelectronics production in 1990; today just 12% of semiconductors are manufactured in the United States.
“There is an urgent need for our economic and national security to provide funding to swiftly implement these critical programs. The Chinese Communist Party is aggressively investing over $150 billion in semiconductor manufacturing so they can control this key technology,” the summary says. For more, read the full Reuters report.
For years the 45th U.S. President urged U.S. tech companies to bring home their supply chains. That message mostly fell on deaf ears. COVID-19 proved that relying on China for masks and other supplies was disastrous and demanding that medical supply chains be returned to the U.S. and Puerto Rico gained momentum.
Bringing home chip R&D and production to the U.S. is clearly a must situation and both sides of the isle are working hard together to get this deal done as quickly as possible as the chip and component crisis expands.