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GPEC Statement: America COMPETES Act and U.S. Innovation and Competition Act Reconciliation

In January of 2021, Congress passed the CHIPS Act. Now, more than a year later, we are still waiting for funds to be designated.

It is imperative that House and Senate leaders reconcile differences in the America COMPETES Act and U.S. Innovation and Competition Act – allocating $52 billion dollars for investment in semiconductor manufacturing, research and development in the United States. The gap between U.S. and global semiconductor manufacturing is narrowing, but we are still far too dependent on foreign chip manufacturers. The longer we delay domestic chip production the more vulnerable our nation becomes.

Demand is set to double in the next decade with expanded mobile phone, computer and electric vehicle use. Europe, India, South Korea and China are already passing subsidy measures to draw new business away from U.S. manufacturing hubs. We are at a make-or-break moment. What barriers exist that are more important than advancing smart policy to move the country forward?

The consequences of delaying this reconciliation can already be seen in markets throughout the country. Large-scale projects in Texas, New York, Ohio and here in Arizona, representing more than 10,000 U.S. jobs and $58 billion in capital investment have stalled. These projects don’t move to scale if this doesn’t get done. Within Greater Phoenix, additional ecosystem investments including more than 25 semiconductor companies are pending, contingent on this legislation. We can fortify this ecosystem with an investment that enhances U.S. competitiveness and signifies globally that we are prioritizing domestic manufacturing and supply chains.

As we interface with global semiconductor executives, it’s clear a broader focus must be placed on the long-term strength of the semiconductor ecosystem. Federal incentives must be considered for suppliers to fortify the semiconductor ecosystem in America. With rising material, construction and labor costs, many of the prime chemical, substrate and packaging suppliers are reevaluating their plans to invest in the United States without federal incentives.

The rest of the world is not waiting. We cannot wait. Now is the time to act and we’re calling on our House and Senate leaders to reconcile their differences and achieve a bipartisan agreement that can be passed and signed into law.