Letter to Hon. Nancy Pelosi, Speaker of the House - Reps. Stevens and Allred Lead on Semiconductor Chip Crisis

Letter

The Honorable Nancy Pelosi

Speaker of the House

H-222, US Capitol

Washington, D.C. 20515

Dear Speaker Pelosi:

We write to urge that you work out a path for the U.S. House of Representatives to pass the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act funding as soon as possible and to enact a semiconductor investment tax credit before the end of 2021. Swift House passage of the full $52 billion that passed the Senate to fund the CHIPS Act in June is a critical step to strengthening our domestic semiconductor supply chains. Likewise, passage of an investment tax credit, as provided in the Facilitating American-Built Semiconductors (FABS) Act, would also help stabilize the semiconductor supply chain. Both will help build and modernize semiconductor manufacturing facilities in America to alleviate the current chip shortage that is adversely impacting a range of U.S. industries and millions of workers.

The CHIPS Act enjoys broad bipartisan support as its authorization passed overwhelmingly in 2020 as part of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA). The funding was appropriated as part of the Senate's United States Innovation and Competition Act (USICA) that passed earlier this year by a vote of 68-32. Some changes in the authorization language in the USICA were provided by the Senate this year and $2 billion was added to incentivize production of "mature technology node" chips for sectors like motor vehicles. We strongly support the overall $52 billion in funding and the mature node-specific $2 billion funding levels, as well as the overall authorization language.

Shortages of chips are getting worse across our nation's supply in the third quarter of 2021. To cite just one example of the damage resulting from this shortage, the Washington Post recently reported the global auto industry will produce 4 million fewer vehicles this year and will lose $110 billion in sales due to the semiconductor shortage. Many other industries reliant on semiconductors -- including information and communications technology, aerospace, renewable energy technology, medical devices, manufacturing, and others -- are facing similar challenges.

Small manufacturers and businesses, regardless of sector, are facing particularly adverse impacts from the current semiconductor shortages, which causes erratic stops and starts of production. Bottom line short falls are often greater for smaller entities. Often these plants and businesses are leading sources of job and economic growth in communities across the country.

Semiconductors play an increasingly important role in American innovation, job creation, national security, and our defense industrial base. However, U.S. production of semiconductors has plummeted from 40 percent in 1990 to 12 percent of the global supply today. (SIA) Key allies and competitors alike are investing billions to gain or retain an edge in wafer and chip production, and we fear that our country's competitive advantage and leadership in chip design will be lost without additional manufacturing capacity and know-how. To be competitive over the long-term and to strengthen the resiliency of America's critical supply chains, our country needs to help enhance research and development efforts by both government and industry for next generation technology, while also providing incentives for the construction of new semiconductor fabs. Congress has an opportunity to play a constructive role in addressing this issue over the medium-and long-term by enacting legislation to incentivize semiconductor manufacturing in the U.S.

The U.S. economy as a whole -- and important sectors of the economy in each of our districts -- depend on our nation having a resilient supply of semiconductors. Now is the time to act on this national priority. We stand ready to work with you to pass this important legislation.

Sincerely,

Haley Stevens

Colin Allred

Jahana Hayes

Greg Stanton

Susan Wild

Lori Trahan

Sharice L. Davids

Elissa Slotkin

Ann Kirkpatrick

Andy Levin

Nikema Williams

Lucy McBath

Cindy Axne

Teresa Leger Fernandez

Richie Torres

Antonio Delgado

Kim Schrier

Jennifer Wexton

Steven Horsford

Mondaire Jones

Chris Pappas

Deborah K Ross

Dean Phillips

Marilyn Strickland

Veronica Escobar

Kaialiʻi Kahele

Jahana Hayes

Frank Mrvan

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