{"id":1951,"date":"2023-05-24T15:18:55","date_gmt":"2023-05-24T07:18:55","guid":{"rendered":"http:\/\/hce.pro.demo.coodemo.com\/?p=1951"},"modified":"2023-06-15T22:57:12","modified_gmt":"2023-06-15T14:57:12","slug":"manufacturers-raise-concern-as-chips-act-sits-on-back-burner","status":"publish","type":"post","link":"https:\/\/www.hceics.com\/pt_br\/manufacturers-raise-concern-as-chips-act-sits-on-back-burner\/","title":{"rendered":"Manufacturers Raise Concern as CHIPS Act Sits on Back Burner"},"content":{"rendered":"

Today, the U.S. accounts for only\u00a012% of the world’s chip supply<\/a>\u2014a 40% drop from its holdings in the 1990s. In 2020, the Senate pitched\u00a0a bipartisan bill<\/a>\u00a0aiming\u00a0to invigorate domestic semiconductor production: the\u00a0CHIPS for America Act<\/a>. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors.<\/p>\n

 <\/p>\n

\"Silicon<\/p>\n

Silicon chip production in a GlobalFoundries facility in New York. Image courtesy of\u00a0<\/em>Cindy Schultz for\u00a0The Washington Post<\/a><\/em><\/h5>\n

 <\/p>\n

In an effort to reestablish the U.S.’ standing as the world’s leading chip producer, the bill proposes to set aside up to\u00a0$52 billion for chipmakers<\/a>\u00a0to ramp up domestic chip manufacturing.<\/p>\n

As part of the National Defense Authorization Act (NDAA), the CHIPS for America Act\u00a0passed in January 2021<\/a>to boost the R&D and manufacturing of semiconductors in the U.S. While the programs under the umbrella of the legislation have the green light on paper, the NDAA has yet to set aside funding for any of them. Over a year later, the House and Senate disagree on nuances within the bill unrelated to chipmaking itself.<\/p>\n

 <\/p>\n

Why the CHIPS Act is on Pause<\/h3>\n

Since February 2022,\u00a0the House and Senate have come to a\u00a0standstill over disagreements<\/a>\u00a0on certain provisions in the bill unrelated to semiconductors, including trade with China and climate considerations. Congress has also directed its focus on other issues, from price inflation to military aid for Ukraine, detracting from the effort to finalize the CHIPS Act.<\/p>\n

In March, Intel CEO Pat\u00a0Gelsinger appeared alongside Micron CEO\u00a0Sanjay Mehrotra, Lam Research CEO\u00a0Tim Archer, and PACCAR CEO\u00a0Preston Feight in Congress to\u00a0push the bill forward<\/a>. Months later, however, the bill remains stalled. Proponents of the CHIPS Act are now racing to resolve disputes before Congress breaks at the end of July for a recess. After the August recess, it’s likely new legislative packages will be put on hold during election season.<\/p>\n

 <\/p>\n

Executives\u00a0Call for the Speedy Passage of\u00a0the CHIPS Act<\/h3>\n

Chipmakers have been vocal about how the delayed funding package has\u00a0affected manufacturing timelines<\/a>.\u00a0Intel, Global Foundries, and IBM are among the major names that have voiced\u00a0persistent\u00a0disapproval against the stalled bill<\/a>.<\/p>\n

In\u00a0a letter\u00a0to congressional leaders<\/a>\u00a0on June 15, the executives of more than 100 tech companies, including IBM, Intel, Microsoft,\u00a0Analog Devices, Micron, Amazon, and Alphabet, exhorted Congress\u00a0to move the CHIPS Act forward. The executives said\u00a0funding for chip research and manufacturing was vital to the entire economy\u2014beyond even the semiconductor industry.<\/p>\n

Intel relied on a $20-billion dollar government subsidy to open a new fab plant outside of Columbus, Ohio. This would have been the company\u2019s first new manufacturing site in 40 years. But the chipmaker,\u00a0reluctant to invest without subsidizing,\u00a0has decided to postpone the opening.<\/p>\n

 <\/p>\n

\"Rendering<\/p>\n

Rendering of Intel’s processing factories in Ohio. Image courtesy of\u00a0Intel<\/a><\/em><\/h5>\n
<\/h5>\n

Global Foundries planned to subsidize a new federal chip manufacturing research lab based in Albany, New York\u2014a plan also now on hold.\u00a0IBM has been vocal<\/a>\u00a0about the potential effects of\u00a0delaying the\u00a0USICA (U.S. Innovation and Competition Act) and the CHIPS Act:\u00a0impaired national security and weakened supply chain resilience.<\/p>\n

 <\/p>\n

Keeping Pace in a Global Electronics Arena<\/h3>\n

The obvious\u00a0response to the rising chip demand\u2014a higher supply\u2014is not an easy issue to address.\u00a0Opening a new fab plant costs approximately\u00a0$10 billion, a sum manufacturers are hesitant\u00a0to invest under volatile market circumstances.\u00a0With the\u00a0CHIPS Act, chipmakers could use\u00a0the $52 billion dollars to extend semiconductor manufacturing, research, and talent outreach, helping the U.S. regain its leadership position in electronics.<\/p>\n

Funding for the\u00a0CHIPS Act is situated within broader bills to increase U.S. competitiveness with China and other nations.\u00a0Following the passing of the CHIPS Act in January last year, Japan, South Korea, and India have created analogous chip incentive programs, according to the New York Times. The European Union also put forth its own\u00a0European Chips Act<\/a>\u00a0in February 2022.<\/p>\n

If the CHIPS Act is delayed beyond the August recess, developers may need to accommodate older chip technologies, create new software solutions, and purchase parts from multiple suppliers. Such temporary solutions, however, have proven to swell the\u00a0“gray market” with counterfeit chips<\/a>\u00a0and increase security risks. The U.S. may also need to rely on foreign partners more\u2014going against the intended purpose of the CHIPS Act for more supply chain sovereignty.<\/p>","protected":false},"excerpt":{"rendered":"

Today, the U.S. accounts for only\u00a012% of the world’s chip supply\u2014a 40% drop from its holdings in the 1990s. In 2020, the Senate pitched\u00a0a bipartisan bill\u00a0aiming\u00a0to invigorate domestic semiconductor production: the\u00a0CHIPS for America Act. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors.   Silicon chip production in a GlobalFoundries facility in New York. Image<\/p>","protected":false},"author":1,"featured_media":2052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/posts\/1951"}],"collection":[{"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/comments?post=1951"}],"version-history":[{"count":1,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/posts\/1951\/revisions"}],"predecessor-version":[{"id":2050,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/posts\/1951\/revisions\/2050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/media\/2052"}],"wp:attachment":[{"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/media?parent=1951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/categories?post=1951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hceics.com\/pt_br\/wp-json\/wp\/v2\/tags?post=1951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}