McCaul, Tillis join colleagues requesting support for U.S. semiconductor manufacturing

U.S. Rep. Michael McCaul (R-TX) and U.S. Sen. Thom Tillis (R-NC) joined a bipartisan contingent of 70 other congressional members in urging President Joe Biden to support sizable investments in U.S. semiconductor manufacturing.

Despite the importance of semiconductors for America’s innovation economy, its share of the semiconductor industry has fallen from 37 percent in 1990 down to an estimated 9 percent by 2030, while China’s has expanded from about 12 percent of the market to an expected 30 percent in 2030, according to an April 12 letter the lawmakers sent to the president.

“The United States cannot wait to provide these resources over the years ahead,” they wrote. “The halted production lines for consumer technology, auto manufacturers, truckers, and other critical industries due to a semiconductor shortage further highlights the pressing need to act quickly and fund the enacted bipartisan provisions.” 

In their letter, the lawmakers encouraged Biden to prioritize securing funding to implement the initiatives authorized in the Creating Helpful Incentives to Produce Semiconductors for America Act, also known as the CHIPS for America Act, which last year was enacted into law as part of the fiscal year 2021 National Defense Authorization Act to establish investments and incentives to support U.S. semiconductor manufacturing, research and development, and supply chain security.

“We would specifically request you consider joining us in support of funding levels that are at least the authorized amounts proposed in the original bill as you work with Congress on a package of policies to better compete with China and how best to strengthen our country’s economic competitiveness and resiliency as well as national security,” they wrote.

The CHIPS provisions authorize funding for manufacturing, R&D and job-training programs, with a focus on creating pathways for Americans to acquire the skills necessary for these jobs, including expanding employment opportunities for disadvantaged workers, according to their letter.

“Ensuring these provisions are fully funded would support thousands of American jobs and create a ripple effect throughout the economy, benefiting countless industries, communities and working families,” they wrote.

Additionally, Rep. McCaul, Sen. Tillis, and their colleagues agreed with previous statements made by Biden that America must build on the bipartisan congressional efforts to authorize the CHIPS provisions and swiftly move to fund these programs so they can be implemented and begin to address the current supply-chain vulnerabilities that threaten U.S. national and economic security, according to their letter.

“We are especially encouraged by the opportunity to do emergency mandatory funding for implementation of CHIPS as part of a competitiveness package the Senate is currently compiling, and would welcome your support in that effort,” wrote the lawmakers. 

Among the members joining Sen. Tillis and Rep. McCaul in signing the letter were U.S. Reps. Brian Fitzpatrick (R-PA), Bill Johnson (R-OH), Tom Emmer (R-MN), Brad Wenstrup (R-OH), and John Katko (R-NY), along with U.S. Sens. Marsha Blackburn (R-TN), Susan Collins (R-ME), Todd Young (R-IN), Bill Cassidy (R-LA), Roger Wicker (R-MS), and Mark Warner (D-VA).