07.22.20

FOLLOWING THEIR PUSH, SCHUMER, GILLIBRAND ANNOUNCE MASSIVE FEDERAL INVESTMENT IN SEMICONDUCTOR MANUFACTURING – INCLUDING INCENTIVES TO EXPAND & BUILD ROBUST DOMESTIC MICROELECTRONICS INDUSTRY – SECURED IN NATIONAL DEFENSE BILL

With The U.S. Leading The Microelectronics Industry, Schumer Urged Critical Investment Into Commercial & Defense-Related Microelectronics Projects To Keep U.S. On Top 

Senators Say Federal Support Will Allow NY-Based Companies, Like ON Semiconductor, IBM, GlobalFoundries, To Grow And Will Ease U.S. Reliance On Foreign-Made Semiconductors, Alleviating Economic & National Security Risks

Schumer, Gillibrand: Defense Bill Will Jolt U.S. Semiconductor Industry And Upstate Economy Into High Gear

Following Schumer’s unveiling of his bipartisan American Foundries Act and major push to bolster U.S. leadership in the microelectronics sector, U.S. Senator Charles E. Schumer and U.S. Senator Kirsten Gillibrand today announced the Fiscal Year 2021 National Defense Authorization Act (NDAA) includes their provision to reestablish U.S. leadership and revitalize innovation in the global microelectronics sector. The senators explained that the bipartisan legislation increase federal investment into 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 amendment passed in the Senate 96-4 yesterday, and the legislation included in the final NDAA, which is expected to be put to a final vote in the Senate in coming days, will provide unprecedented support for the U.S. semiconductor industry.

“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 sector, is the perfect place to grow this industry 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. We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs. This is 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 Upstate New York and the entire country."

“Our nation is in an economic crisis. Investing in microelectronics manufacturing and the semiconductor industry will create high paying manufacturing jobs for hard working Americans at a time when our country needs it most,” said Senator Gillibrand. “This amendment will help expand our advanced manufacturing workforce in Upstate New York and invest in cutting edge research and development. I’m proud that this legislation is included in NDAA so that we can continue to strengthen our microelectronic domestic supply chain, prioritize American owned businesses over foreign production, and keep our country safe.”  

The senators 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 and Gillibrand 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.

Specifically, supporters of the amendment include 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 applaud the passing of the Cornyn Amendment to the NDAA today and Senator Schumer's leadership in driving this initiative. GF has been leading the charge in domestic semiconductor manufacturing for over a decade,” said Tom Caulfield, CEO of GlobalFoundries. “It is critical that the US keep pace with the rest of the world in domestic supply of semiconductors as this is vital to national security and to America's continued economic leadership. Today's decision is a strong show of support that our nation’s leaders understand how high the stakes are and that America is playing to win. We look forward to this program being implemented so that GF can immediately expand our US manufacturing capabilities and create additional high-paying advanced manufacturing jobs.”

“Today the U.S. semiconductor industry is recognized as the global leader. Semiconductors underpin the technologies at the foundation of today’s society, driving economic growth and sustaining national security,” said IBM Executive Vice President, Dr. John E. Kelly III. “We at IBM thank Senator Schumer and Senator Gillibrand for their leadership in introducing the American Foundries Act. We are pleased that this amendment has been included in the NDAA, and look forward to its final passage to sustain and advance U.S. semiconductor innovation.”

“ON Semiconductor applauds the inclusion in the Senate NDAA of an amendment to authorize programs to restore American leadership in semiconductors,” said Keith Jackson, President and CEO of ON Semiconductor. “When combined with other actions, including robust research and manufacturing incentive appropriations, the bold actions outlined in the amendment will enable 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.

“Senator Schumer has been a long-time champion of New York's 1,250-acre STAMP megasite in Genesee County and this legislation provides a tremendous opportunity to create thousands of high-quality semiconductor jobs for the Western New York and Finger Lakes regions.  In short, STAMP is a transformative economic development game-changer that will generate billions of dollars of economic activity across Upstate New York," said Steve Hyde, president and CEO of the Genesee County Economic Development Center (GCEDC).  "We appreciate Senators Schumer and Gillibrand’s push to pass this milestone legislation that advances our site, region, and New York's readiness as we compete globally for projects of this scale.” 

“When HVEDC heard the news that Senator Schumer’s American Foundries Act was included in this year’s final NDAA, we were ecstatic. This game changing legislation will give us the tools needed to grow the Hudson Valley economy post-pandemic by building on the foundations that industry leaders like IBM, GlobalFoundaries, and ON Semiconductor have already laid in our region,” said Mike Oates, President and CEO of Hudson Valley Economic Development Corporation. “We know that Senator Schumer and Gillibrand fought hard to include this provision in the final NDAA and we thank them for their efforts to keep and create good-paying, high-tech manufacturing jobs right here in the Hudson Valley.”

“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.”

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."

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.”

"We are excited to see this proposal move forward, 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."

Details on the NDAA Amendment 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 120 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 semiconductor technology and innovation 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.

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