July 31, 2020

ON THE HEELS OF HIS SUCCESSFUL PUSH TO INCLUDE GAME-CHANGING SEMICONDUCTOR AMENDMENT, SENATOR PUSHES MASSIVE FEDERAL INITIATIVE FOR SEMICONDUCTOR MANUFACTURING IN FINAL NATIONAL DEFENSE BILL – TO BRING MASSIVE FEDERAL INVESTMENT TO GLOBALFOUNDRIES, CREATE NEW JOBS, AND KICK CAPITAL REGION ECONOMY INTO HIGH GEAR

Schumer Says U.S. Must Maintain Its Global Leadership In Semiconductor Tech Innovation, And New Schumer-Authored Bill Means More Microelectronics Factories & Jobs In The U.S.A. – At Sites Like GlobalFoundries – Cementing U.S. Leadership In Microelectronics Industry

Schumer Says Super-Charged Federal Support Will Allow NY-Based Companies, Like GlobalFoundries, To Grow And Reduce Dangerous U.S. Reliance On Foreign-Made Semiconductors, Create Jobs, And Boost Local Economy

Schumer: Defense Bill Will Jolt U.S. Semiconductor Industry And Capital Region Economy & Create Opportunities To Bring Hundreds Of Jobs To Saratoga County

Following his unveiling of the bipartisan American Foundries Act and his successful push to include major federal support for the U.S. microelectronics industry in the upcoming final national defense bill, U.S. Senator Charles E. Schumer stood with GlobalFoundries CEO, Tom Caulfield, in Malta, to call for swift final passage of the Fiscal Year 2021 National Defense Authorization Act (NDAA), which includes the provisions from the Senator’s bill to continue U.S. leadership and revitalize innovation in the global microelectronics sector. Schumer explained that the bipartisan legislation, among other things, will launch federal initiative into semiconductor manufacturing, including companies like GlobalFoundries, by providing new federal incentives to conduct advanced research and development of semiconductor technology, secure the supply chain, and ensure national and economic security by reducing reliance on foreign semiconductor manufacturing.

The amendment passed in the Senate 96-4 earlier this month as part of the Senate-passed NDAA which now awaits final consideration and passage. This is a major step forward in providing unprecedented support for the U.S. semiconductor industry and creating opportunities to bring hundreds of jobs to Saratoga County and Upstate New York.

“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and Upstate New York, especially the Capital Region, which has a robust semiconductor sector, is the perfect place to grow this industry by leaps and bounds,” said Senator Schumer. “America must continue to invest in our domestic semiconductor industry in order to keep good-paying, high-tech American manufacturing jobs here in Upstate New York. We need to ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs. This is essential to our national security and to U.S. leadership in this critical industry."

"We were pleased to welcome Senator Schumer to GlobalFoundries Fab 8 facility, the most advanced semiconductor foundry in the U.S., to celebrate inclusion of Senator Schumer's Amendment as a part of the powerful 2021 National Defense Authorization Act. For many years, Senator Schumer has supported semiconductor manufacturing and GlobalFoundries and this legislation will boost chip production and U.S. semiconductor manufacturing leadership. Now is the time to double down on semiconductor manufacturing in the U.S. where it began more than half a century ago," said Tom Caulfield, CEO GlobalFoundries.

Schumer noted that even though the U.S. revolutionized the microelectronics industry and invented nearly all of the key technology used to this day, competitors in Asia, especially China, have made huge investments into their microelectronics industries in recent years to challenge and undercut U.S. leadership. In fact, Schumer pointed out, the U.S. has gone from producing 24% of the world’s semiconductors in 2000, to just 12% more recently. In contrast, China has gone from producing zero chips to 16% of the world’s supply in the same time frame. The senator warned that by 2030, Asia is projected to control 83% of the global semiconductor manufacturing supply while domestic production could be less than 10%, threatening U.S. reliance on foreign-made microelectronics, which could pose huge risks to U.S. national and economic security.

Schumer has long-championed increased efforts to expand the domestic microelectronics industry, showing strong support for companies like GlobalFoundries, which houses their most advanced ‘Fab 8’ manufacturing facility in Malta. With New York home to multiple major companies and research institutions in the semiconductor industry, the state is positioned to securely supply the U.S. government with critical technologies and maintain U.S. leadership in this technology, offering a tremendous opportunity for New York’s semiconductor companies to expand operations, create more jobs in Upstate New York, and help the U.S. reduce its reliance on foreign semiconductor manufacturing.

Details on the NDAA Amendment can be found below. 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.

This amendment, which is also co-sponsored by U.S. Senator Kirsten Gillibrand, is based on the Senator’s bipartisan American Foundries Act, which has been broadly supported by key players in New York’s semiconductor industry, including GlobalFoundries, IBM, ON Semiconductor, Cree, Inc., the Genesee County Economic Development Center, Hudson Valley Economic Development Corporation, Mohawk Valley EDGE, Cornell University, Binghamton University, and SUNY Polytechnic Institute.

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