The Semiconductor Industry Association (SIA) is a trade association and lobbying group founded in 1977 that represents the United States semiconductor industry.
Considering the significance of chips to the U.S. and their role in the global ecosystem, how does the CHIPS Act fit into this, and what role do you play in bringing all parties together?
For America to remain the world’s technology leader, it must lead the world in semiconductors. U.S. semiconductor leadership strengthens our economy, national security, global competitiveness, and technology leadership. To achieve these goals, policymakers should work together to build on policies to enhance U.S. capabilities in semiconductor research, design, and manufacturing.
The CHIPS Act is on track for great success, incentivizing more private investment in U.S. chip production and innovation. CHIPS has sparked hundreds of billions of dollars in company investments in America. These new semiconductor projects are projected to create and support hundreds of thousands of U.S. jobs and help triple America’s semiconductor manufacturing capacity by 2032 – the largest percentage increase in the world.
CHIPS has also revved up semiconductor R&D in America, investing billions in programs like the National Semiconductor Technology Center (NSTC) and the
National Advanced Packaging Manufacturing Program (NAPMP). These initiatives will help keep America at the tip of the spear in semiconductor innovation.
The CHIPS Act emerged as America recognized the critical role of semiconductors in national security, economic stability, and supply chain resilience. This awareness became especially evident during the pandemic, which exposed the impact of chip shortages on everyday products like cars and appliances. The shortage crystallized the importance of semiconductors to both consumers and policymakers, rallying bipartisan support for the CHIPS Act.
Historically, other countries have provided incentives for chip manufacturing, which made it difficult for U.S.-based manufacturers to compete. The CHIPS Act levels the global playing field, making the U.S. more attractive for building new chip manufacturing facilities.
How important is it to maintain a global perspective in the semiconductor industry, given its geopolitical nature?
A global outlook is essential because the semiconductor industry is intensely interconnected and geographically dispersed. Coordinating with international allies helps promote the strength of the global semiconductor supply chain, which benefits everyone and our industry.
Bill Gurley, a venture capitalist, said that Silicon Valley’s success is due to being so far away from Washington D.C. How do you navigate lobbying efforts between DC, Silicon Valley, and other tech hubs?
Beyond the CHIPS Act, regulatory issues like tax policy, trade policy, and export controls play a crucial role in shaping the industry's future. Our role is to ensure policymakers are well-informed about the sector's importance so regulations support continued innovation without stifling competitiveness.
What challenges remain in public perception and advocacy for the semiconductor industry?
While awareness of semiconductors has grown, many people still don’t fully understand the industry's complexity. This can be challenging when advocating for targeted policy solutions. The industry includes diverse segments like advanced logic chips and analog components, each with unique roles and contributions. Our ongoing task is to educate policymakers and the public about these nuances, ensuring that support for the industry is well-informed. A deeper understanding helps create policies that are effective in fostering innovation and growth within the sector.
How does the CHIPS Act address the 'Valley of Death' in research and innovation?
A key part of the CHIPS Act is its focus on bridging the "Valley of Death" in innovation, where promising ideas fail to transition from research to practical, commercial application. Roughly $13 billion of the Act is dedicated to research, including the creation of the National Semiconductor Technology Center (NSTC). This center aims to support moving technologies from prototype to production. The NSTC will function similarly to Belgium’s IMEC, but with a greater focus on translating research into commercial applications.
Looking ahead to 2030, what are your expectations for the U.S. and the global semiconductor landscape?
By 2030, I believe the U.S. will remain a leader in innovation, particularly in chip design and architecture. The country’s culture of risk-taking and rapid iteration, combined with a strong university system, will continue to drive its leadership in the industry. Even as Moore’s Law becomes more difficult to chase and costs rise, there are many opportunities for innovation in materials, architecture, design, and chip packaging. These areas offer new paths for progress, allowing the U.S. to maintain its edge in semiconductor advancements, despite the many challenges ahead.
