SIA: US chip industry wants $ 37 billion for America First

The US semiconductor industry is seeking $ 37 billion in state aid for the construction of a new chip factory in the United States and for research funding. This emerges from a paper from the Semiconductor Industry Association (SIA), which the Wall Street Journal is present. According to the newspaper, some influential government officials, including Secretary of Commerce Wilbur Ross and Secretary of State Mike Pompeo, are considering ways to help nationalize the industry.

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  2. Stadtwerke Duisburg AG, Duisburg

“The Trump administration is committed to ensuring that the US has a secure, vibrant, and internationally competitive high-tech ecosystem that is supported by domestic chip manufacturing.”said Ross. A spokeswoman for the State Department repeated this position and said the state was working “working closely with Congress and industry to ensure the future of the semiconductor industry remains in the United States”.

In Congress, a group of Republicans and Democrats proposed a $ 110 billion increase in technology spending, which would include semiconductor research. This is borne by Senator Chuck Schumer, leader of the Democratic parliamentary group, and Republican Senator Todd Young. Senator Tom Cotton (Republican) is already putting together a bill that reflects some of the SIA’s proposals. “Advanced microelectronics is critical to future US technology leadership, and we cannot allow the CPC to control these critical supply chains.”Cotton told the Wall Street Journal.

Chips as a weapon in the trade war with China

Technologically, the USA is the world leader in chip production. However, only the private Chinese Huawei group has some advanced chips in the 5G area for mobile radio systems. SIA estimates that China is expected to double its share of global chip production capacity to around 28 percent by 2030, including the production of foreign companies based in China. Only 12 percent of the chips are manufactured within the US borders.

The U.S. Department of Defense said in a May 2, 2020 paper,, that “5G technology includes strategic capabilities that affect the economic and national security of the United States (…).” The U.S. military must have access to the best 5G systems, services, and applications in the world to increase the effectiveness, resilience, speed, and lethality (lethality) of the armed forces. The U.S. Department of Defense would prioritize 5G investment, promote testing and integration at its sites, promote spectrum sharing, and invest in advanced technologies with sub-6 GHz and millimeter waves.

In one Letter to the Department of Defense hit Intel boss Bob Swan in April that the company should work with the U.S. Department of Defense to build and operate a facility, which the SIA says should be subsidized with $ 5 billion.

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