America’s Semiconductor Trade Affiliation (SIA) has submitted feedback to the US Division of Commerce in response to President Biden’s Govt Order on securing vital provide chains.

The submission highlights the significance of the worldwide semiconductor provide chain to sustaining a robust chips trade and identifies a spread of vulnerabilities within the provide chain.

Because the semiconductor scarcity disaster worsens within the US, the White Home is making ready to host a digital assembly to debate options to provide chain points, which are disrupting US industrial output, significantly within the automotive sector.

The SIA submission additionally urges the Biden administration and Congress to enact Federal incentives for home chip manufacturing and investments in chip analysis to make sure the long-term energy and resilience of America’s semiconductor provide chain.

“Semiconductors are foundational to America’s financial system, nationwide safety, well being care system and digital infrastructure and they are going to be vital for US management within the important applied sciences of the longer term, together with synthetic intelligence, quantum computing and superior wi-fi communications,” mentioned SIA president and CEO, John Neuffer.

“We respect President Biden’s give attention to guaranteeing the energy and resilience of America’s semiconductor provide chains. As a part of this effort, we look ahead to working with the Biden administration and Congress to enact federal investments in home chip manufacturing and innovation so extra of the semiconductors our nation wants shall be manufactured on US shores.”

SIA’s feedback embrace the next highlights:

• About 75% of semiconductor manufacturing capability, in addition to many suppliers of key supplies, are concentrated in China and East Asia, a area uncovered to excessive seismic exercise, geopolitical tensions and lack of contemporary water and energy
• 100% of the world’s extremely superior (under 10 nanometers) logic semiconductor manufacturing capability is presently positioned in Taiwan (92%) and South Korea (8%), due in no small half to wholesome incentives and authorities help from these host nations
• There are greater than 50 factors throughout the worth chain the place one area holds greater than 65% of the worldwide market share. A few of these single factors within the worth chain might be disrupted by pure disasters, infrastructure shutdowns, or geopolitical conflicts and will trigger large-scale interruptions within the provide of important chips
• As well as, geopolitical tensions might end in commerce restrictions that impair entry to essential suppliers of important expertise, distinctive uncooked supplies, instruments, and merchandise which can be clustered in sure nations. Such restrictions may additionally limit entry to vital finish markets, probably leading to a big lack of scale and compromising the trade’s capacity to maintain the present ranges of R&D and capital depth

To handle provide chain vulnerabilities, SIA’s feedback name on authorities to:

• Enact focused Federal investments in home semiconductor manufacturing and analysis
• Assure a stage international enjoying subject, in addition to robust safety of IP rights
• Promote international commerce and worldwide collaboration on R&D and expertise requirements, significantly with allied nations
• Step up efforts to handle the scarcity of expertise by way of additional funding in science and engineering training, in addition to immigration insurance policies that allow main international semiconductor clusters to draw world-class expertise; and
• Set up a transparent, steady and focused framework for any controls on semiconductors that keep away from broad unilateral restrictions on applied sciences and distributors, whereas establishing market incentives for extra assured sources for our army and demanding infrastructure wants

These vulnerabilities and required authorities actions to handle them are additionally highlighted in a brand new research by SIA and the Boston Consulting Group, titled: Strengthening the World Semiconductor Provide Chain in an Unsure Period.

The SIA provides the share of world semiconductor manufacturing capability within the US has decreased from 37% in 1990 to 12% right now.

In January, the American Congress enacted the CHIPS for America Act as a part of the FY 2021 Nationwide Protection Authorization Act (NDAA). The SIA says the brand new regulation requires incentives for home semiconductor manufacturing and investments in chip analysis, however funding have to be supplied to make these provisions a actuality.

In February, the SIA board of administrators, and later a coalition of enterprise leaders led by the Affiliation, referred to as on President Biden to work with Congress to fund semiconductor manufacturing and analysis initiatives as a part of his infrastructure plan.

Present the press launch