Press release:
Following his unveiling of his bipartisan American Foundries Act and successful addition of this bill as an amendment in July to the Senate’s Fiscal Year 2021 National Defense Authorization Act (NDAA), U.S. Senator Charles E. Schumer today announced the final version of the FY2021 NDAA includes his provision to bolster U.S. leadership in the semiconductor and broader microelectronics industries.
The senator explained that the new programs included in NDAA will increase federal support for 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 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 industry, is the perfect place to grow domestic semiconductor R&D and manufacturing 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. With today’s victory, we are one step closer to ensuring our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs.
"This is a step 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 the Upstate New York economy and the entire country’s national security and competitiveness."
The senator 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 pointed out, the U.S. 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. It offers a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the United States reduce its reliance on foreign semiconductor manufacturing.
Supporters of the original amendment included 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.
"We applaud Senator Schumer for his leadership and dedication to attract significant semiconductor investments and innovations back to America," said Steve Hyde, President and CEO of the Genesee County Economic Development Center. "The strategic advantages created by Senator Schumer‘s amendment are a critical step forward for our economy. The semiconductor industry has a clear pathway for success through New York's unmatched talent base and the high-capacity infrastructure available at the 1,250-acre Western New York Science & Technology Advanced Manufacturing Park in Genesee County."
Emmanuel P. Giannelis, vice provost for Research and Vice President for Technology Transfer, Intellectual Property and Research Policy at Cornell University, said, “Senator Schumer has long recognized that the best way to keep America at the forefront of the technology revolution is to invest in research and development here at home.
"Not only does the American Foundries Act of 2020 direct critical resources into expanding the domestic production of microelectronics, it also points the way to the future with substantial funding for research and innovation. It is especially fitting, given the importance of the semiconductor industry to national security, that this important proposal is moving through Congress as part of the National Defense Authorization Act. Cornell University is pleased to support the American Foundries Act and commends Senator Schumer for his leadership.”
Details on the original amendment that has been integrated into the final NDAA can be found below. The amendment:
- 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 180 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 microelectronics leadership and competitiveness 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, and establish a Department of Defense National Network for Microelectronics Research and Development.
