Senator Doug Jones' Bill to Bring Manufacturing Jobs Back from China Included in Annual National Defense Bill

Press Release

U.S. Senator Doug Jones of Alabama today announced that this year's National Defense Authorization Act (NDAA) will include a bipartisan proposal he sponsored last month to incentivize investments in American semiconductor manufacturing businesses instead of Chinese-owned companies. The provision was approved today in the Senate (96-4) as an amendment to the NDAA.

The Alabama Micro/Nano Science and Technology Center at Auburn University is a world leader in microelectrics engineering, and with 15 semiconductor companies in Alabama, the state stands to benefit substantially from increased investment in American semiconductor manufacturing.

"We all know that China is a bad actor on the world stage, which is why it is so crucial that the United States continues to lead the world in semiconductor technology," Senator Jones said. "Not only will this provision help bring jobs back from China, it will incentivize investment in Alabama companies and will strengthen our national security by reducing reliance on foreign manufacturing."

Semiconductors are used in a large variety of electronic devices, such as smart phones, digital cameras, televisions, and some computers. While the U.S. revolutionized the microelectronic industry and invented nearly all of the key technology used to this day, competitors in China have made huge investments into their microelectronics industries in recent years to challenge and undercut U.S. leadership. By 2030, Asia is projected to control 83-percent of the global semiconductor manufacturing supply while domestic production could be less than 10-percent, threatening U.S. reliance on foreign-made microelectronics and posing huge risks to U.S. national and economic security.

Specifically, the amendment:

Directs the Secretary of Commerce to create a grant program for constructing, expanding, or modernizing commercial semiconductor fabrication, assembly, testing, packaging, and advanced R&D facilities in the U.S.
Directs the Secretary of Defense to create a partnership program with the private sector to encourage the development of advanced, measurably secure microelectronics for use by the Department of Defense, Intelligence Community, critical infrastructure, and other national-security applications.
Requires the Secretary of Commerce to commence a review within 120 days assessing the state of the U.S. semiconductor industrial base.
Establishes a Multilateral Microelectronics Security Fund, with which the U.S., its allies and partners will work to reach agreements promoting consistency in their policies related to microelectronics, greater transparency including supply chains, and greater alignment in export control and foreign direct investment policies.
Directs the president to establish a subcommittee on semiconductor technology and innovation within the National Science and Technology Council, directs the Secretary of Commerce to establish a national semiconductor technology center to conduct research, fund semiconductor startups and a Manufacturing USA Institute, create a National Advance Packaging Manufacturing Program, and encourage the Secretary of Labor to work with the private sector on workforce training and apprenticeships in semiconductor manufacturing.

Source