Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
News
January 27, 2022 12:44 PM

Legislation takes aim at microchip crisis

Erin Pustay Beaven
Rubber News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    American Competes Act 3_i.jpg

    Federal support for semiconductor manufacturing may be on the way.

    By the end of next month, the U.S. House of Representatives expects to vote on a bill that could help to spur domestic production of semiconductors.

    Introduced Jan. 25 as a response to the Senate's U.S. Innovation and Competition Act — which passed that chamber in June — the America Competes Act is intended to spur U.S. manufacturing, strengthen the manufacturing sector to better compete with China and address supply chain concerns.

    While there are several key differences between the two proposed pieces of legislation — namely the House's elimination of $200 billion for technological innovation and scientific research — each includes $52 billion to support U.S. semiconductor manufacturing.

    House Speaker Nancy Pelosi, D-Calif., called the America Competes Act "bold, results-oriented legislation."

    "The America Competes Act reflects a whole-of-House effort, involving the deep expertise of chairs, members and staff across our committees to produce a historic bill that will be most effective at strengthening our competitiveness at home and abroad," Pelosi said. "Now is the time to recommit to boldly and strategically investing in our nation's future, and to do so in a way that strengthens the supply chain, lowers costs and ensures that America can out-compete any nation, today and for decades to come."

    Jay Timmons, president and CEO of the National Association of Manufacturers, praised the America Competes Act, saying it represented a strong bipartisan effort to invest in manufacturers and boost the American economy.

    "The introduction of the America Competes Act, which includes many components of the overwhelmingly bipartisan U.S. Innovation and Competition Act, is a major step forward," Timmons said in a Jan. 26 statement. "Not only would its provisions help address inflation and alleviate supply chain challenges we're facing today, but the bill provides significant investment in U.S. semiconductor manufacturing, which would also help us avert future crises.

    "We will work to get it passed through the House and then work with the Senate to ensure that final legislation achieves the critical shared goals of this bill and the U.S. Innovation and Competition Act and makes it to the president's desk," Timmons said.
     

    The case for U.S.-made semiconductors

    In a news release issued the same day the America Competes Act was introduced, the U.S. Department of Commerce emphasized the need for investment in semiconductor manufacturing, releasing findings from "Risks in the Semiconductor Supply Chain" Request for Information.

    According to the Commerce Department, the median inventory held by chips consumers, including automakers and medical device manufacturers, fell from 40 days in 2019 to five days in 2021.

    In that same time, demand for semiconductors rose by as much as 17 percent, Commerce found. Meanwhile, semiconductor facilities are operating at or above 90 percent utilization, leaving little room to help meet the growing demand.

    "The semiconductor supply chain remains fragile, and it is essential that Congress pass chips funding as soon as possible," Secretary of Commerce Gina Raimondo said in a statement. "With sky-rocketing demand and full utilization of existing manufacturing facilities, it's clear the only solution to solve this crisis in the long term is to rebuild our domestic manufacturing capabilities."

    President Joe Biden, in a statement issued during a White House ceremony Jan. 21, noted that the U.S. manufactured 40 percent of the world's semiconductors in 1990.

    "But since that time, something happened. American manufacturing — the backbone of our economy — got hollowed out," Biden said. "Companies moved jobs and production overseas, especially from the industrial Midwest. … Today we barely produce 10 percent of the computer chips, despite being the leader in chip design and research. And we don't have the ability to make the most advanced chips now —r ight now."

    Biden noted that East Asia today produces 75 percent of the world's semiconductors, and more than 90 percent of the most advanced microchips are sourced from Taiwan.

    P001_RPN_20220124.jpg

    Want first access to the latest news, exclusive content, digital editions and data? We've got you. Learn more about individual and corporate subscription options at RubberNews.com/subscribe.

    Biden's comments came the same day that Intel Corp. unveiled plans to invest $20 billion in a microchip manufacturing campus in Central Ohio, not far from the state's capital city of Columbus.

    Intel's is the latest in a series of announced investments that will boost semiconductor manufacturing capacity in the U.S. According to a White House fact sheet, the semiconductor industry has in the last 13 months pledged to invest $80 billion in new investments in the U.S. by the dawn of 2026. These include:

    • Intel's $20 billion Ohio investment;

    • Texas Instruments investing up to $30 billion in Texas;

    • A new Global Foundries factory in New York state;

    • Cree's intention to spend $1 billion to expand a current plant in North Carolina;

    • SK Group investments in a new U.S. R&D center; and

    • Micron's planned expansion of U.S. production.

    RECOMMENDED FOR YOU
    Pipe extruder fined for child labor law violation
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    ExxonMobil weighing options for more chemical recycling capacity
    2
    Wilbert Plastic Services adjusts to changes with new owner, leadership
    3
    PepsiCo on a ‘multiyear journey' toward bioplastics
    4
    After years of challenges, can secondary sortation take off?
    5
    Biden sets US goal to replace 90% of plastics with biomaterials
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified