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With The U.S. Leading The Microelectronics Industry, Schumer Fought to Secure This Critical Federal Support For Commercial & Defense-Related Microelectronics Projects To Keep U.S. On Top 

Senator Says Provision Will Allow NY-Based Companies, Like ON Semiconductor, Cree, Inc., IBM, GlobalFoundries, To Grow And Will Ease U.S. Reliance On Foreign-Made Semiconductors, Alleviating National Security Risks And Boosting U.S. Competitiveness

Schumer: U.S. Semiconductor Industry And Upstate Economy About To Be Jolted Into High Gear

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,” said Senator Schumer. “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 U.S. 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% of the world’s semiconductors in 2000, to just 12% more recently. In contrast, China has gone from producing zero chips to 16% of the world’s supply in the same time frame. The senators warned that by 2030, Asia is projected to control 83% of the global semiconductor manufacturing supply while domestic production could be less than 10%, 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, offering a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the U.S. 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 were pleased to welcome Senator Schumer to GlobalFoundries' most advanced  U.S  Fab 8 facility in NY  to celebrate inclusion of his Amendment as a part of the powerful 2021 National Defense Authorization Act. For many years, Senator Schumer has supported semiconductor manufacturing and GlobalFoundries and this legislation will boost chip production and U.S. semiconductor manufacturing leadership. Now is the time to double down on semiconductor manufacturing in the U.S. where it began more than half a century ago," said Tom Caulfield, CEO of GlobalFoundries.

"IBM applauds Senator Schumer’s leadership to include provisions in the National Defense Authorization Act that will help sustain and advance our nation’s semiconductor industry, including in New York State. Semiconductors underpin the technologies at the foundation of today’s society, driving economic growth and sustaining national security. The provisions that Senator Schumer has championed support creation of a National Semiconductor Technology Center, bringing government, industry and academia together to create technology, training and growth opportunities that are unavailable in the U.S. today,” said Dr. John E. Kelly III, Executive Vice President of IBM.

“ON Semiconductor applauds the inclusion of authorization of semiconductor incentives in the Conference Agreement on the NDAA,” said Keith Jackson, President and CEO of ON Semiconductor. “The strong bipartisan, bicameral support for this authorization demonstrates a recognition that bold actions are needed for the U.S. to respond to the aggressive incentives available to overseas competitors and reverse the decline in America’s share of global semiconductor manufacturing.”

“Cree continues to invest aggressively in silicon carbide manufacturing and research in order to support the growing, global demand for our technologies, and we believe advanced semiconductor manufacturing is essential to leading the acceleration of critical next-generation technologies. Like many other semiconductor companies in the U.S., we believe this legislation would provide necessary investments that move our industry and economy forward and we commend its introduction, ” stated Gregg Lowe, President and CEO of Cree, Inc.

"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."

 "We thank Senator Schumer for his steadfast leadership and commitment to bolstering the Hudson Valley‘s growing semiconductor industry at places like IBM and ON Semi,” said Mike Oates, President and CEO of the Hudson Valley Economic Development Corporation.  “With these new investments, the growing semiconductor industry will continue to pave the way for our future economy, creating new jobs and driving other regional industries forward as a result. The Hudson Valley is a natural place for microelectronics expansion as these investments will be instantly paired with companies already looking to capture the benefit of the technology.”

Onondaga County Executive Ryan McMahon said, “Thanks to important investments that have been made combined with easy access to affordable water and power, Onondaga County is among the few sites across the country ready for a semiconductor manufacturing facility to invest and grow, bringing good, high paying jobs to our community.” McMahon continued, "Thank you to Senator Schumer and all of our federal partners for getting this important amendment added to the NDAA."

“Construction of new microelectronics and semiconductor fabrication facilities have the ability to change the economic landscape of a region and this proposal is a strategic investment to secure the United States’ position as a global  leader in microelectronics and semiconductor R&D,” said Steven J. DiMeo, President, Mohawk Valley EDGE. “As our economy shifts away from the long-standing model of industrialism coupled with the uncertainty of a global pandemic, we now more than ever need the federal government to continue its support of game-changing industries like semiconductors and microelectronics. The construction of Cree’s state-of-the-art 200 mm enabled SiC semiconductor facility at the Marcy Nanocenter in Upstate NY, is a pivotal example of what can be done when all stakeholders are working together to advance our high-tech ecosystem and regional economy and maintain the United States’ global competitiveness.”

"Thank you Senator Schumer for your continue support of research at Binghamton University. We are excited to see this proposal included within the NDAA, especially during these difficult economic times," said Harvey Stenger, president of Binghamton University. "Supporting research and development in next-generation microelectronics technology and applying resources to enhance the bridge from early R&D to at-scale manufacturing is what is needed to accelerate U.S.-based innovation and workforce development. Binghamton, as a research institution with a long history of advancing microelectronics applications, stands ready to support this initiative and collaborate with our industry partners to create more jobs in Upstate New York, and help the U.S. reduce its reliance on foreign semiconductor manufacturing."

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 U.S.
  • 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 U.S., 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.