The Semiconductor Industry Association has asked President Joe Biden to provide substantial funding for semiconductor research and manufacturing efforts as the administration works on its economic recovery and infrastructure plan.
SIA's board of directors wrote a letter to the president Thursday saying investments in domestic semiconductor research and production will help drive U.S. economic growth and create jobs in the country while improving supply chain resilience and national security.
The association said the country's share of semiconductor manufacturing worldwide has dropped to 12 percent today due to incentives and subsidies offered by other governments to global competitors to establish semiconductor facilities.
SIA noted that Congress authorized increased investments and incentives for semiconductor research and manufacturing by enacting the CHIPS for America Act in the 2021 defense policy bill.
"Working with Congress, your administration now has an historic opportunity to fund these initiatives to make them a reality," the association said. “We therefore urge you to include in your recovery and infrastructure plan substantial funding for incentives for semiconductor manufacturing, in the form of grants and/or tax credits, and for basic and applied semiconductor research."