SIA: CHIPS for America Act Would Strengthen U.S. Semiconductor Manufacturing

The legislation includes a range of federal investments to advance U.S. semiconductor manufacturing and help mitigate chip shortages.

SILVER SPRING, Md. — The Security Industry Association (SIA) has joined a coalition of organizations in urging Congress to support President Joe Biden’s $50 billion funding request for the CHIPS for America Act.

The bipartisan legislation includes a range of federal investments to advance U.S. semiconductor manufacturing, including $10 billion for a new federal grant program that would incentivize new domestic semiconductor manufacturing facilities. The bill also includes a refundable investment tax credit for the purchase of new semiconductor manufacturing equipment and other facility investments.

In a recent letter addressed to congressional leaders of both parties and White House officials, the coalition urged Congress to consider appropriations for the CHIPS for America Act to support the diversification, expansion and resiliency of the U.S. semiconductor supply chain.

Along with SIA, the coalition includes Alliance for Digital Innovation, Associated General Contractors of America, BSA | The Software Alliance, CTIA, GovEvolve, Information Technology Industry Council, Software and Information Industry Association, Tech CEO Council and USTeleCom.

In light of the global chip shortage — including manufacturing and shipping delays, supply chain disruptions and increased demand for semiconductor chips that impact product manufacturers — SIA supports incentivizing eligibility for CHIPS Act funding programs.

Semiconductor chips play an essential role in the security industry’s ecosystem by enabling security equipment to function, interoperate with other communication systems and augment traditional solutions to include artificial intelligence (AI), 5G and Internet of Things (IoT) functionalities.

“The primary policy motivation behind the CHIPS for America Act is to increase and make resilient the semiconductor supply chain as it relates to long-term national security and economic competitiveness,” the letter says. “The U.S. should welcome and encourage the investment in and production of semiconductor technology by all eligible companies to achieve this goal.”

The groups urged Congress to move swiftly to fund the act and ensure its benefits are widely available and implemented in a technology- and industry-neutral fashion.

The full title of the legislation is Creating Helpful Incentives to Produce Semiconductors for America Act. The coalition’s letter can be read here.

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