The proposed legislation to boost semiconductor manufacturing

With a semiconductor shortage having a ripple effect across manufacturing since the early days of the COVID-19 pandemic, a proposed bill would help incentivize U.S. microchip production.

A semiconductor manufacturing bill in Washington offers more than $50 billion in government incentives to bolster microchip production. With Republicans warming to the legislation and the Biden Administration pushing for its approval, the bill could be signed into law before Congress enters a month-long August break.

The U.S. and other countries have seen a semiconductor shortage hold up production on things like cars and electronics, leading to higher costs and inflation.

“From 1990 when we manufactured 37% of America’s semiconductors here in the U.S. — that number is down to 12%.” — John  Neuffer, Semiconductor Industry Association

John Neuffer is president and CEO of the Semiconductor Industry Association. He says while the United States once was a leader in microchip manufacturing, other countries began investing in the area decades ago.

“As a result,” says Neuffer, “from 1990 when we manufactured 37% of America’s semiconductors here in the U.S. — that number is down to 12%.”

Neuffer says the proposed legislation aims to remedy that shortcoming in two ways.

“One is in the form of $10’s of billions in grants,” says Neuffer, “and then also in an investment tax credit.”

Beyond reinforcing the country’s microchip manufacturing, Neuffer says, if signed into law, the bill could lead to hundreds of thousands of jobs.


Listen: John Neuffer discusses the proposed legislation to boost semiconductor manufacturing.

 


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Author

  • Alex McLenon

    Alex McLenon is a Reporter with 101.9 WDET. McLenon is a graduate of Wayne State University, where he studied Media Arts & Production and Broadcast Journalism.