ITI Offers Recommendations to U.S. Commerce Department to Support a Strong, Domestic Semiconductor Industry
WASHINGTON – Today, global tech trade association ITI provided recommendations to the U.S. Commerce Department as it seeks to strengthen and diversify the U.S. semiconductor supply chain. In comments (opens in a new tab) to the Department’s Request for Information on Incentives, Infrastructure, and Research & Development Needs to Support a Strong Domestic Semiconductor Industry, ITI highlighted the need to invest in the overall semiconductor ecosystem, including fully funding the CHIPS for America, working with global partners and allies, and building a skilled and advanced manufacturing workforce.
“Semiconductors are vital to the United States’ economic competitiveness and national security, as are many of the technologies that rely on a secure supply of chips, such as 5G, Internet of Things (IoT), Artificial Intelligence (AI), data centers and cloud computing, quantum computing, and supercomputer development,” ITI wrote in its submission. “ITI and its members strongly believe that for the U.S. to maintain its technology leadership, we must make investments to strengthen and diversify the semiconductor supply chain by incentivizing manufacturing, research and development, and prototyping, and promoting a strong, skilled and advanced manufacturing workforce.”
In the comments, (opens in a new tab) ITI outlined actionable solutions the Department of Commerce can take to strengthen U.S. semiconductor leadership, including:
- Enhance Domestic Semiconductor Ecosystem. To address domestic semiconductor manufacturing capacity and supply chain resiliency issue long-term through a more sustainable approach, the U.S. government should adopt policies that will incentivize increased domestic chip production to ensure all industries have ample access to semiconductors.
- Ensure an Open Approach and Cooperation with Global Partners and Allies.The Commerce Department should apply the principle of openness when considering strategic investments to ensure incentives are accessible to all capable chip manufacturers, irrespective of location of the headquarters, that meet the standards and guidelines set forth in the CHIPS Act.
- Empower Resiliency and Diversification. Supply chains for semiconductors, as for all ICT products, are complex and global. Geographic diversification has reduced costs and helped make technology more accessible. Working with trusted international partners on diversification should be an important prong of U.S. strategy.
- Strengthen the Semiconductor Workforce. The U.S. must support significant funding for science, technology, engineering, and mathematics (STEM) and computer science education to meet the growing demand for semiconductor manufacturing and design.
- Consider Broad Factors for Semiconductor Financial Assistance Program. ITI supports considering a broad range of factors when reviewing applications, key criteria including economic impact, American technology leadership, non-discrimination, market demand, metrics for technology advancement, fab capacity, sustainability, digitalization, etc.
Additionally, ITI expressed support for the Biden Administration’s efforts to work with U.S. Congress to secure funding for CHIPS Act through passage of Bipartisan Innovation Act making its way through the legislative branch.
Read the full comments and recommendations here (opens in a new tab).
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