November 08, 2021

WASHINGTON – Today, global tech trade association ITI encouraged the U.S. government to identify sustainable, long-term strategies to address the current semiconductor shortage and promote supply chain resiliency and risk management. In the comments to the U.S. Commerce Department's Request for Public Comments on Risks in the Semiconductor Supply Chain, ITI encourages the government to remain focused on supporting and accelerating strategic investments in research, development, prototyping, manufacturing, and advanced packaging capacity across the semiconductor supply chain ecosystem.

“ITI and its member companies share a strong commitment to address challenges to global semiconductor supply chains,” ITI wrote in its submission. “We believe government and industry must work together to achieve the trusted, secure, and reliable global supply chain that is essential for protecting national and economic security and an indispensable foundation for supporting innovation and economic growth. In the course of its review and its efforts to identify semiconductor supply chain bottlenecks, we encourage the U.S. government to recognize that such improvements will not happen overnight. Given the unprecedented demand for chips, ITI encourages the U.S. Government to remain focused on supporting and accelerating strategic investments in research, development, prototyping, manufacturing, and advanced packaging capacity across the semiconductor supply chain ecosystem, with a particular focus on gaps in U.S. capabilities.”

In the comments, ITI provided recommendations to build a stronger and more resilient semiconductor supply chain while addressing the current semiconductor shortage:

  • Move Quickly to Fund the CHIPS for America Act. Funding the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) Act and enactment of a strengthened Facilitating American Built Semiconductors (FABS) Act will help the United States remain competitive by incentivizing semiconductor research, design, and manufacturing in the U.S.

  • Ensure a Non-Discriminatory Approach and Cooperation with Global Partners. This will ensure that the U.S. remains a competitive investment destination for the world’s most advanced and innovative technology solutions and drive alignment on strategic objectives around global semiconductor supply chain with partners and allies.

  • Empower Resiliency and Diversification. ITI recommends exploring international partnerships to help prevent future disruptions and promote diversification that can help make the global supply chain more resilient and less susceptible to geopolitical interruptions.

  • Strengthen the Technology Workforce. Though the workforce issue does not appear as a specific question in the request for comments, it is important for the U.S. to support significant funding for science, technology, engineering, and mathematics (STEM) and computer science education to meet the rising demand of chips.

  • Caution That the Data Collection Approach in the Request for Comments Data Collection Approach May Not Provide an Accurate Picture. While the desire to identify data-driven solutions to the current challenge is understandable, we caution that the RFC may not yield information that presents an accurate and meaningful picture of the issues related to semiconductor supply that companies and consumers may face in the future. ITI recently led other groups representing major sectors of the U.S. economy on a letter to the U.S. Commerce Secretary on this issue.

Read the full comments and recommendations here.

Public Policy Tags: Cybersecurity, Supply Chain, Public Sector