BACKGROUNDER: Biden-Harris Administration Brings Semiconductor Manufacturing Back to America


Intel Announces $20 Billion Facility in Ohio; Latest company to invest in the United States and strengthen domestic supply chains

Semiconductors are an essential part of the goods and products that Americans use every day. These computer chips are critical to a range of industries and products from cars and smartphones to medical equipment and even vacuum cleaners. They help power our infrastructure from our network to our broadband. The United States once led the world in global semiconductor manufacturing. But over the past few decades, the United States has lost its advantage: our share of global semiconductor production has fallen from 37% to just 12% over the past 30 years.

The COVID-19 pandemic has highlighted the fragility of the global semiconductor supply chain. Experts estimate that the global chip shortage caused a percentage point drop in US gross domestic product (GDP) last year. U.S. autoworkers have faced furloughs and production stoppages due to pandemic-induced disruptions at Asian semiconductor factories, contributing to steep increases in car prices for U.S. consumers . A third of annual price increases in the core consumer price index (CPI) last year were due to high car prices alone.

The Biden-Harris administration has worked around the clock with Congress, our international allies and partners, and the private sector to expand American chipmaking capacity, bring back critical American manufacturing jobs, address the chip shortage, and s ensure that we are not exposed to these disturbances again. Today, Intel will announce a new $20 billion factory outside of Columbus, Ohio.

Today’s announcement is the latest marker of progress in the Biden-Harris administration’s efforts to accelerate domestic manufacturing of critical goods like semiconductors, tackle near-term bottlenecks in supply chain, revitalize our manufacturing base and create good jobs here at home. This investment will create 7,000 construction jobs and another 3,000 permanent jobs, another sign of the strength of the US economy.

To accelerate this progress, the President is urging Congress to pass legislation to strengthen U.S. research and development and manufacturing for critical supply chains, including semiconductors. The Senate passed the United States Competition and Innovation Act (USICA) in June, and the administration is working with the House and Senate to finalize this legislation. It includes full funding for the CHIPS for America Act, which will provide $52 billion to catalyze more private sector investment and maintain America’s technology leadership.

Since the start of 2021, the semiconductor industry has announced nearly $80 billion in new investment in the United States through 2025, according to the Semiconductor Industry Association. These investments will create tens of thousands of well-paying jobs in the United States, support American technology leadership, and promote the security and resilience of global semiconductor supply chains. In addition to Intel’s announcement today, the investments include:

  • A $17 billion Samsung factory in Texas — the result of hard work by the administration, including the president’s meeting with President Moon of the Republic of Korea in May.
  • Texas Instruments invests up to $30 billion in Texas;
  • A new Global Foundries factory in New York State;
  • Cree’s intention to spend $1 billion to expand an existing plant in North Carolina;
  • investments by the SK group in a new R&D center in the United States; and
  • Micron to the expansion of American production.

The Biden-Harris administration has led a whole-of-government effort to secure these critical investments.

  • President Biden prioritized domestic semiconductor manufacturing and research and development (R&D) shortly after taking office, naming semiconductor supply chains as the centerpiece of his national initiative supply chain launched in February 2021.
  • In June, the Commerce Department issued a series of recommendations on how to secure the US semiconductor supply chain. Since then, Commerce Secretary Gina Raimondo, National Security Advisor Jake Sullivan and National Economic Council Director Brian Deese have held regular follow-up engagements with industry leaders and diplomatic and allied partners to provide practical solutions to strengthen the global semiconductor supply chain. This includes the White House meeting with the CEOs of several semiconductor companies in this effort.
  • In October, President Biden hosted a global supply chain summit with heads of state from 14 countries and the European Union on the sidelines of the G20 in Italy to discuss supply chain disruptions, highlighting emphasis on semiconductors. The president also focused on semiconductor supply chain resilience during his bilateral meetings with foreign leaders and asked the administration to cooperate with Europe to strengthen global supply chains. through the US-EU Trade and Technology Council (TTC) and through the Quad’s focus on critical technologies.

Investments in new foundries are critical to the long-term resilience of our semiconductor supply chains. At the same time, the administration is working to address near-term disruptions to semiconductor supply chains that have contributed to challenges in a number of manufacturing sectors and price increases for U.S. consumers. .

  • In April 2021, the President hosted a virtual summit with leading chip-producing and chip-using companies to identify practical ways to discuss actions they could take to address disruptions resulting from the global shortage of fleas. At the end of the year, participants announced new partnerships between semiconductor companies and US automakers to build resilience in the automotive chip supply chain.
  • Over the summer, the administration worked with governments and companies around the world to mitigate COVID-related disruptions to semiconductor manufacturing and, in September 2021, established a global early warning system. to identify and address pandemic-related disruptions.
  • The Commerce Department has promoted transparency in semiconductor supply chains, including through a fall 2021 chip shortage survey to identify key choke points in semiconductor supply chains. supply of semiconductors. Over 150 responses were received from all parts of the supply chain – producers, consumers and intermediaries – including responses from nearly all major semiconductor producers and major automotive manufacturers. The results of the survey will be made public by the end of January 2021.
  • The US Department of Defense has used Defense Production Act authorities to strengthen supply chains of key defence-related semiconductors.

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