semiconductor industry

Press release:

After announcing that a strategic partnership between Intel and IBM will bring hundreds of new semiconductor R&D jobs to New York’s Capital Region, U.S. Senate Majority Leader Charles E. Schumer followed up on his efforts to cement Upstate New York as the global hub of the semiconductor industry and pitched Intel’s recently appointed CEO Pat Gelsinger on how Intel should build on its new partnership with IBM and locate their next semiconductor fabrication (“fab”) plant in Upstate New York.

Last week, Intel shared its plans to select a second site for its next U.S. manufacturing facility within a year, following the announcement of the IBM R&D partnership.

Schumer said New York boasts several sites across Upstate ready to be home to Intel’s next Chip fab, or the supply chain Intel would require, from Alabama's STAMP campus in Western New York and the White Pines campus in Central New York, to Marcy Nanocenter in the Mohawk Valley and Luther Forest in the Capitol Region.

Plus, Upstate New York boasts a thriving semiconductor ecosystem as evidenced by the just announced IBM partnership, the state’s top notch universities and world-class workforce, and a diversity of companies across the supply chain. Typically, semiconductor fabs bring thousands of new jobs into a region, a number which Schumer said would be a win-win-win for the local economy, Upstate New York workforce, U.S. competitiveness, and Intel itself.

“Intel’s plans to invest in a second U.S. semiconductor fab offers a game-changing opportunity for Upstate New York and I made it clear to Intel all that New York has to offer to make their U.S. expansion a huge success for the company and the country,” Senator Schumer said.

“With an existing semiconductor ecosystem, including leading R&D companies, premier universities to train the next-generation workforce, a thriving supply chain, and robust utilities that can host advanced manufacturing, Upstate New York is tailor made to be the home of Intel’s new manufacturing facility.”

Schumer added, “An Intel fab in Upstate New York would not only help shore up our domestic production of chips, but it also positions the company to take even more advantage of its partnership with IBM to develop and lead in next generation semiconductor technology, a point I made to Intel’s CEO as they consider further building out their U.S. manufacturing operations in the year ahead.

"I stand ready to give my all out support in helping Intel harness all that the federal government has to offer to continue to lead the tech industry and position New York as a global hub of semiconductor manufacturing, including pushing to fully fund the federal incentives I created in last year’s defense bill so companies like Intel receive support to invest in U.S. competitiveness and create thousands of new jobs.”

Schumer has long emphasized the importance of active federal support for the semiconductor industry. This includes his push to include provisions in the FY2021 NDAA to create new federal semiconductor manufacturing, R&D, and training programs.

He notes that even though the United States revolutionized the semiconductor and broad microelectronics industries and invented nearly all of the key technology used to this day, by 2030, non-U.S. competitors are projected to control 83 percent of the global semiconductor manufacturing supply. And domestic production could be less than 10 percent, threatening U.S. reliance on foreign-made microelectronics, including from China, and posing huge risks to U.S. national and economic security.

In a meeting with then-nominee for Commerce Secretary, Gina Raimondo, Schumer raised the urgent need to fully fund and implement the new Commerce semiconductor manufacturing grant and R&D programs he passed into law as part of last year’s defense authorization. He pointed to this Intel investment as an example for why these federal incentives are such a high priority.

In February, Schumer announced that the Senate would work on a bill in the spring of this year that includes his bipartisan Endless Frontier Act, which would provide a major infusion of federal funds for federal R&D, including for semiconductors.

As part of this competitiveness package Schumer plans to bring to the Senate floor this spring, he will be pushing for emergency funding to implement the federal semiconductor programs created in last year’s defense bill so these critical programs can be implemented to help the U.S. successfully compete with other countries, including China, for new semiconductor manufacturing investment.

Schumer has led the effort to create these historic new federal investments in domestic semiconductor manufacturing and R&D. Last year, Schumer unveiled his bipartisan American Foundries Act to bolster U.S. leadership in semiconductor and broader microelectronics industries. He successfully added this bill as an amendment in July 20202 to the Senate’s Fiscal Year 2021 National Defense Authorization Act (NDAA).

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, including the creation of the NSTC, secure the supply chain, and ensure national and economic security by reducing reliance on foreign semiconductor manufacturing.

Press release:

Yesterday, Senate Majority Leader Chuck Schumer discussed his push to direct Senate committees to craft legislation to protect American jobs and outcompete China. Below are Senator Schumer’s remarks, which can also be viewed here:

"Today on our caucus call, I directed the chairs and members of our relevant committees to start drafting a legislative package to outcompete China and create new American jobs.

"The legislation will have as its centerpiece a bicameral, bipartisan bill, the Endless Frontiers Act, which I introduced last year with (Sen.) Todd Young (R-IN), and Representatives Ro Khanna (D-CA), and Mike Gallagher (R-WI) in the House. And it will take the key cutting industries and make American investments so we will outcompete China in all of them.

"In addition, we will make serious investments in strengthening the U.S. semiconductor industry to outcompete China and stop depending on foreign sources.

"Right now, semiconductor manufacturing is a dangerous weak spot in our economy and in our national security. That has to change.

"You've all seen that auto plants throughout America are closed because they can't get the chips. We cannot rely on foreign processors for the chips. We cannot let China get ahead of us in chip production. This will be part of the proposal that we will introduce. 

"We will also talk about the build out of 5G and how America can remain number one there. And all of these have bipartisan support. The bill we will intend to introduce, and I talked to Senator Young about it, and he's eager to get it done, will be bipartisan.

"Our intention is to put this legislation on the Senate floor for a vote this spring.

"To get a little more specific, the new legislation must achieve three goals: enhance American competitiveness with China by investing in American innovation, American workers and American manufacturing; invest in strategic partners and alliances: NATO, Southeast Asia and India; and expose, curb, and end once and for all China's predatory practices which have hurt so many American jobs.

"We're looking at emergency funding to implement the bipartisan Semiconductor Program as part of this package. You all know about the chip shortage. I want this bill to address America's short term and long term plan to protect the semiconductor supply chain and to keep us number one in things like AI, 5G, quantum computing, biomedical research, storage. All of these things are part of the bill and the Endless Frontiers Act.

"So we need to get a bill like this to the president's desk quickly to protect America's long term economic and national security."

***************************************************************************

In Genesee County, the Science and Technology Advanced Manufacturing Park -- STAMP -- in Alabama is a semiconductor fabrication (“fab”) plant.

Previously: Schumer pitches top brass at Samsung on shovel-ready STAMP site for new semiconductor plant

Press release:

U.S. Senate Majority Leader Charles E. Schumer yesterday (Jan. 27) followed up on his efforts to secure a provision in the FY2021 National Defense Authorization Act to boost American-based semiconductor manufacturing by reaching out directly to Samsung, which is interested in possibly locating their new plant in Genesee County.

He called Senior Vice President of Samsung Device Solutions Joe Herr and other top brass about the Genesee Science and Technology Advanced Manufacturing Park -- STAMP -- in Alabama and expressed his strong support for the project coming to Western New York.

Samsung is currently considering the STAMP campus, as well as several other locations in other states, for its semiconductor fabrication (“fab”) plant – with 1,900 jobs – that the company plans to open late next year. Samsung’s Device Solutions division includes Samsung’s Global Semiconductor Foundry business. 

“This Samsung project is an exciting and a potential game changer for the region," Schumer said. "I made it clear to Samsung that I strongly support locating their planned 1,900 worker state-of-the-art semiconductor chip fab at the shovel-ready STAMP site in Genesee County. I know firsthand that STAMP is shovel-ready – and that, combined with Upstate New York’s robust semiconductor industry, make Genesee the perfect location for Samsung’s new chip fab.

World-class WNY Workforce

"Our world-class Western New York workforce combined with New York’s considerable experience in semiconductor manufacturing and R&D means STAMP is tailor-made to be the home for Samsung’s new facility. I stand ready to help Samsung harness all that the federal government has to offer to continue to lead the tech industry and position New York as a global hub of semiconductor manufacturing.

“When I stood at STAMP in August to announce my proposal to create the first-ever new federal semiconductor manufacturing and R&D incentives program, I said it could put sites like Western New York’s STAMP in contention for landing a new semiconductor manufacturing plant and the thousands of new jobs that come with it.

"This game-changer proposal passed into law last month and already companies like Samsung are considering STAMP for a 1,900 job chip fab plant, partly because of this new federal initiative. Now, I will work to secure this federal investment and offer my all-out support and advocacy in helping STAMP compete for this multi-billion-dollar plant.” 

Schumer has long championed the Genesee site and toured STAMP in August, and knows firsthand how ideal the campus would be as home for Samsung’s new chip fab. Schumer explained to Samsung that he, alongside the Genesee County Economic Development Center (GCECC), New York State, and Western New York officials, worked for a decade to help ensure that it was shovel-ready for a semiconductor facility.

WNY Offers: Low Utility Costs, Transportation Networks, Supplies Access, Brain Power

“The STAMP campus, sitting on 1,250 acres of land between Buffalo and Rochester, New York’s second and third largest metros, respectively, with a 1.2 million person world-class workforce, is specifically designed for large-scale fabs and provides maximum flexibility in layout and infrastructure connections,” Schumer said.

"Additionally, the senator pointed out many cost and infrastructure advantages to the STAMP campus location, including low utility costs, access to existing transportation networks, access to New York state’s existing chip fab supply chain ecosystem, and 62 colleges, universities, and community colleges within a two-hour drive of the site including Cornell University, University at Buffalo, Rochester Institute of Technology, University of Rochester, Genesee Community College.

Schumer said Samsung is relying on his legislation to building new fabs like this one in the United States. In fact, Schumer pointed out, the United States has gone from producing 24 percent of the world’s semiconductors in 2000, to just 12 percent while China, by comparison, has gone from producing zero chips to 16 percent of the world’s supply because the United States is not matching the investments that other competing nations are making in order to land new job-creating semiconductor chip fabs.

The senator's first-ever legislation will reverse this imbalance and level the playing field for companies like Samsung to build new chip fabs in the United States. For the first-time Schumer’s legislation will provide federal incentives to semiconductor chip fabs to build in the United States.

U.S. Reliance on Foreign-made Microelectronics Could Pose 'Huge Risks'

Upon passage of his legislation last month in the FY2021 National Defense Authorization Act Schumer said his legislation is vital. He noted that even though the United States revolutionized the microelectronic industry and invented nearly all of the key technology used to this day, by 2030, non-U.S. competitors are 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.

In a recent meeting with the Commerce Secretary nominee, Governor Gina Raimondo, Schumer raised the urgent need to fully fund and implement the new Commerce semiconductor manufacturing grant program he passed into law as part of last year’s defense authorization, pointing to this Samsung investment as an example for why these federal incentives are such a high priority. Federal incentives are critical to the United States successfully competing with other countries, including China, for new semiconductor manufacturing investment like the proposed Samsung facility.

Schumer, in addition to paving the way for future federal incentives for investment into domestic semiconductor manufacturing previously brought STAMP to the attention of the Department of Defense, urging the agency to work with the semiconductor industry to expand the domestic supply of chips and other microelectronics.

STAMP is Made Specifically for What Samsung Needs

STAMP is specifically designed for development of large-scale semiconductor manufacturing. The 1,250 acre mega site can accommodate large advanced manufacturing operations with its expansive space for several plants.

Schumer has also previously lobbied the Board of Directors of the Semiconductor Industry Association (SIA) to put STAMP on their map and pitched SIA’s 18 semiconductor industry CEOs to look to expand their operations in Upstate New York at sites like STAMP in Genesee County.

In 2017 Schumer helped secure Federal Energy Regulatory Commission (FERC) approval of Empire Pipeline Inc.’s revised and extended PILOT agreement with Genesee County, the proceeds of which were needed to finance new water infrastructure at STAMP.

In 2016 Schumer began assisting STAMP secure necessary U.S. Fish and Wildlife right-of-way permits to construct new infrastructure hook-ups to STAMP. In 2012, Schumer successfully advocated on behalf of STAMP by calling on the U.S. Army Corps of Engineers to provide necessary wetlands permit assurances so that STAMP's developers could proceed with developing the site.

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.