• About
  • Contact
  • Testimonials
  • Newsletter
  • More
    • Demographics & Advertising Rates
    • Terms & Conditions
Wednesday, June 7, 2023
No Result
View All Result
California Business Journal
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness
California Business Journal
U.S. Semiconductor Production

How Congress Can Save U.S. Semiconductor Production and Innovation

Time is running out to revive America’s position as a global leader in chip manufacturing and reinforce its leadership position in chip design, research

by John Neuffer, Special to California Business Journal
A A
Share on FacebookShare on Twitter

In the more than 60 years since the first semiconductor company opened in the Golden State, computer chips have become as quintessentially Californian as the movie industry. Silicon Valley’s nickname even comes from the material used to make the chips that are foundational to so many aspects of our lives.

Today, semiconductors are California’s top export. The state ships $11.2 billion in semiconductors annually and the chip industry supports more than 64,000 jobs in California, accounting for nearly $26 billion in wages each year. Beyond that, the Golden State’s top industries rely on semiconductors to make the movies, devices, and produce California is known for. Advancements in U.S.-based semiconductor research, design and manufacturing have benefited these industries and countless others, supported millions of American jobs, and fortified our national security.

Without action from Congress, though, the U.S. semiconductor sector will be diminished as chip companies open new manufacturing facilities, known as fabs, in countries that provide considerably more incentives to semiconductor businesses than the U.S. does.

Thirty years ago, the United States and Europe were the world’s largest chip producers, but today both lag behind East Asian countries, where 75% of the world’s chips are now produced. Between 1990 and 2020, America’s share of the world’s modern chip manufacturing capacity fell from 37% to 12%. During the same period, China’s market share grew from less than 1% to 15%.

What caused this shift? Other countries began to offer incentives to semiconductor companies to build their facilities there. As a result, it’s 25% to 50% more expensive to build and operate a fab in the U.S. than overseas.

congressThe House and Senate both passed competitiveness bills that close this gap by providing $52 billion in incentives to build fabs domestically and research investments. Reconciling these bills and sending a version to President Biden would put the U.S. on the path to becoming a leader in semiconductor manufacturer again. The investments, combined with America’s well-educated workforce and robust intellectual property laws, will entice companies to build the fabs needed to meet expanding global demand in America.

ADVERTISEMENT

One assessment by the Semiconductor Industry Association and Oxford Economics found that a $50 billion federal investment would add $24.6 billion annually to the economy and create an average of 185,000 temporary American jobs annually for five years. Such an investment would also spur hundreds of billions of dollars in private investments in the U.S.

Given that so many semiconductors are produced in East Asia, a natural disaster or international conflict in the region could precipitate another global chip shortage. U.S.-based fabs could help mitigate against these sorts of supply chain shocks. Stateside fabs would also increase the number of domestically produced semiconductors available for the Department of Defense to use for national security technology.

As it finalizes competitiveness legislation, Congress should also include an investment tax credit for semiconductor manufacturing and design. While the U.S. is the global leader in chip design, its lead has slipped in recent years. An investment tax credit would fortify America’s leadership position in this critical stage of semiconductor production.

Each day Congress fails to act endangers America’s semiconductor leadership. Commerce Secretary Gina Raimondo recently warned that the U.S. is mere “months” away from losing out on opportunities if Congress fails to pass legislation. Semiconductor companies, she said, “can’t wait any longer” and are actively considering locating their fabs elsewhere.

Members of the House and Senate can’t let new fabs—and the jobs they bring—go abroad. They can’t let the clock run out. It’s time to bring semiconductor manufacturing back home to the land of innovation.

John Neuffer is President & CEO of the Semiconductor Industry Association.
John Neuffer

John Neuffer is President & CEO of the Semiconductor Industry Association.

Tags: accountingAmericanbusinessesCaliforniaCEOcompanyeconomyhomeHow Congress can Save U.S. Semiconductor Production and Innovationintellectual propertyinvestmentinvestmentsjobsJohnmanufacturingnaturalprivatesupply chaintaxU.S. Semiconductor Production and Innovation
ADVERTISEMENT
John Neuffer, Special to California Business Journal

John Neuffer, Special to California Business Journal

Related Posts

Next-Gen Supply Chain
Steering The Next Generation of Supply Chain Efficiency
The White House, Gun Control and Protecting "Our Children" From School Shootings
TX shooting tears
The Ultimate Betrayal
U.S. West Coast Ports
Op-Ed: How U.S. West Coast Ports Can Help Improve Our Supply Chain Woes
Jared Whitley
Commentary: California Must Unleash American Energy Power or Ukraine Will Just Be the First Victim
ADVERTISEMENT

CBJ Newsletter

Facebook Twitter LinkedIn Instagram LinkedIn

Advertise With CBJ

Contact Rick@CalBizJournal.com

CBJ Rates and Demographics

ADVERTISEMENT
1REALTOUR-SAN DIEGO-WEB DESIGN
Facebook Twitter LinkedIn LinkedIn Instagram Youtube
C B J   LOGO  SVG-01
  • About
  • Contact California Business Journal
  • Testimonials
  • Demographics & Advertising Rates
  • Terms & Conditions

Categories

  • Art & Culture
  • Business
  • California Hotel Listings
  • Daily Updates
  • Editor's Choice
  • Education
  • Featured
  • Finance
  • Food & Dining
  • Health & Fitness
  • Human Interest
  • Insurance
  • Law
  • Lawyers
  • Marketing
  • Medical
  • News
  • Newsletter
  • Opinion
  • People
  • Popular
  • Real Estate
  • Social Media
  • Technology
  • Uncategorized

CBJ Partner Firebrand Media

Laguna Beach Independent Newspaper
 Laguna Beach City Guide
 Newport Beach Independent Newspaper
Newport Beach Country Club Magazine
  Montage Magazine
 Omni Escapes Hotel Magazine
 Bespoke Concierge New York
 Evans Hotels
 Laguna Beach Magazine
 On The Menu Laguna Beach
 Newport Beach Magazine
Coastal Real Estate Guide (NB,LB, CDM)
Monarch Beach Resort Magazine
 Pacific Coast Magazine (SoCal)
Sea Island Life Magazine
Salamander Hotel & Resorts Magazine
 View our entire portfolio

 

Most Viewed

  • More Truth About Temu: Is Temu A Chinese Company?

    The Truth About Temu: Where Is It From?

    0 shares
    Share 0 Tweet 0
  • Lawsuit Basics: How Much Does It Cost to Sue Someone?

    0 shares
    Share 0 Tweet 0
  • Investigation: Can TriumphFX Take Your Money?

    0 shares
    Share 0 Tweet 0
  • What to Do When an Online Casino Refuses to Pay Out Your Winnings

    0 shares
    Share 0 Tweet 0
  • The Impact of Covid: Racing to Buy Second Citizenships

    3 shares
    Share 0 Tweet 0
  • Top 5 Flavors On Elf Bar BC5000 Review

    0 shares
    Share 0 Tweet 0
  • NFL Paychecks: How Do NFL Players Get Paid?

    0 shares
    Share 0 Tweet 0
  • Temu’s New Shipping Policy Is A Smashing Hit For Shoppers All Over the Country

    0 shares
    Share 0 Tweet 0
  • 30 Best Temu Alternative Apps To Buy from Online

    2 shares
    Share 0 Tweet 0
  • Five Reasons Why The Government Does Not Like Bitcoin

    0 shares
    Share 0 Tweet 0

Latest Articles

Courtesy: Pexels

The Evolution of Gambling: Exploring the Future of Crypto Betting and Technological Advancements

How to Get 1,000 YouTube Subscribers (for Free!)

Why Music Sounds Better Under the Influence of Cannabis?

How Affiliate Marketing Truly Works

A Game of Chance and Destiny: Delve into the Intriguing Universe of Casinos

Courtesy: Unsplash

Why Do You Need Data Protection Software?

Mostbet brand in 2023

Exploring the Growth Potential of Delaware Statutory Trust Properties

How To Practice Self-Care When You’re Struggling With Infertility

An 8-Step Guide to Make a Music Video Like a Pro

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR

No Result
View All Result
  • Front Page
  • Business
  • Finance
  • People
  • Featured
  • Opinion
  • Technology
  • Law
  • News
  • Food
  • Art & Culture
  • Human Interest
  • Education
  • Insurance
  • Real Estate
  • Health & Fitness

California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
Site Design by 1REALTOUR