Biden Administration Giving Attention to Semiconductor Supply Chains

At the end of February, President Biden issued an Executive Order directing several federal agency actions to secure and strengthen America’s supply chains. One of the directives is for the Commerce Secretary to submit a report to the President within 100 days “identifying risks in the semiconductor manufacturing and advanced packaging supply chains, and proposing policy recommendations to address these risks.” To aid in that effort, the Commerce Department’s Bureau of Industry and Security (BIS) issued a notice of request for public comments.

China Tech Threat’s Roslyn Layton responded, highlighting research on this important area, including her recent report with the Coalition for a Prosperous America’s Jeff Ferry on “Maintaining U.S. Leadership in Semiconductors and Countering China’s Threats.” Her comment in full – which makes the following points – may be read here:

  • The U.S. needs to restore and reshore its capability to manufacture advanced chips.
  • U.S. over-reliance on TSMC is a risk.
  • Without restoring America’s semiconductor manufacturing capability, the U.S. risks further loss in jobs, wages, and prosperity.
  • The U.S. must address its weakness in semiconductor manufacturing.
  • U.S.-based fabs must be able to deliver continuous improvement and reliability to power America’s leading electronics companies.
  • Tax deductions to incentivize U.S. companies to purchase U.S.-made chips.
  • Supply chain diversification is essential for national security. The U.S. should aim for 50% market share of chip manufacturing in the key categories.
  • Policymakers must focus on long-term leadership, not next year’s profitability.
  • BIS needs to restrict exports to China’s fabs YMTC and CXMT, selling out America’s strategic semiconductor advantage to China.
  • Export controls, when implemented, keep sensitive technology out of enemy hands.

Beyond the recent EO and comment period, it’s clear that the Biden administration is giving critical attention to the semiconductor industry. In fact, the White House will hold a chip summit on April 12th to discuss the impact of the chip shortage in the U.S. We are encouraged by these actions. Read China Tech Threat’s full comment submission here, and learn more about BIS and its future leadership here.