It’s good for the federal government to fund chips in states that have already spent their own money, rather than trying to spread money across every area that hasn’t invested in semiconductors, said panelists on an Information Technology and Innovation Foundation (ITIF) webinar Wednesday. State officials discussed their roles in helping the Chips Act succeed. “Piggybacking on the work we’re doing is what is going to see us succeed,” said Kevin Younis, New York Empire State Development chief operating officer. “There has to be strategic cluster-based investments [or] we’re not going to succeed. With the peanut butter spread over the whole sandwich, you won’t taste it.” States can help the Chips Act succeed by addressing the workforce gap and cutting red tape, said David Isaacs, Semiconductor Industry Association vice president-government affairs. "There's a huge gap throughout the economy in skilled workers," with the semiconductor industry “just a small slice of the overall pie,” said Isaacs. An SIA report said about 58% of needed jobs may not be filled, including engineers, computer scientists and technicians, he said: “We need to see federal-state partnerships with industry and education to train these workers.” Also, states can play an important role speeding projects by streamlining permitting and other regulatory approval processes, he said. Arizona Commerce Authority CEO Sandra Watson said her state is “constantly having conversations about the regulatory environment and how to make that easier on industry.”
As the Biden administration this week marked the one-year anniversary of the enactment of the Chips Act, which provides incentives and funding opportunities for the chips sector, the semiconductor industry urged the White House and lawmakers to keep foreign markets open and “advance policies that enhance this historic accomplishment.”
The Semiconductor Industry Association this week released a report on the state of the American chip industry, highlighting issues surrounding U.S. Chips Act implementation, the manufacturing industrial base, global chip demand, American technological competitiveness, geopolitical tensions impacting the industry and more.
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The Biden administration should wait to place new export controls on the semiconductor industry until it adequately assesses the impact of its existing restrictions, the Semiconductor Industry Association said this week. The U.S. chip industry should be able to continue accessing the China market, SIA said, warning that “repeated steps” to “impose overly broad, ambiguous, and at times unilateral restrictions risk diminishing the U.S. semiconductor industry’s competitiveness, disrupting supply chains, causing significant market uncertainty, and prompting continued escalatory retaliation by China.”
Broadcasters, satellite companies and trade groups disagreed how often the FCC should reevaluate its regulatory fee structure and whether the system needs new payers, in reply comments filed by Thursday’s deadline. The agency should “continue to conduct such reviews of the work of its indirect FTEs [full-time equivalents] annually, as well as to identify additional ways that the Commission’s regulatory fee process can be made fairer and remain current,” said a joint reply from state broadcast associations in docket 23-159. “A complex accounting of indirect FTEs is not fair, administrable, or sustainable” and doing such an analysis annually would create administrative burdens and raise fairness concerns, said CTIA.
Space economy revenue hit $384 billion globally in 2022, the Satellite Industry Association said Tuesday in its annual state of the satellite industry report. It said the satellite industry had $281 billion revenue, including $145 billion in ground equipment revenue and $113.3 billion in satellite services revenue. Satellite revenue for the year was essentially flat from 2021, with growth in most segments offset by declines in video, SIA said. It said the 7,316 active satellites at the end of 2022 were up 321% from five years earlier, and more than 5,000 small satellites were deployed between 2020 and 2022. The 7,316 are operated by entities headquartered in 83 countries, it said. Of the 7,316, 63% are for commercial communications, it said. SIA said 2022 ended with 596 operational geostationary orbit satellites, up from 574 in 2021.
The Commerce Department should amend several portions of its proposed guardrails on recipients of Chips Act funding, including measures that could prevent the U.S. chip industry from participating in international standards bodies or inhibit “routine” business activities, trade groups and technology companies said in comments released this week. Some said Commerce should also limit which companies qualify as “foreign entities of concern” and revise the rule’s proposed definition for “legacy semiconductor” to more closely align with export controls.
Governments globally should “proceed carefully” when considering new trade restrictions on per-and polyfluoroalkyl substances (PFAS) to avoid “unduly” restricting current semiconductor innovation, the Semiconductor Industry Association said last week. The group said PFAS “are used in a wide range of industrial processes and consumer products,” and although some may present “environmental and health concerns,” governments should avoid controlling uses of the substances that may not present health and environmental risks.
The Commerce Department launched a paper this week detailing its strategy for a National Semiconductor Technology Center, a “key component” of the Chips Act designed to support and improve American leadership and competitiveness in semiconductor research, design, engineering and advanced manufacturing. The paper outlines how the NSTC will “accelerate America’s ability to develop the chips and technologies of the future,” the agency said, including by creating “affiliated technical centers around the country.”