Bending the knee: US semiconductor juggernauts ask the government for help

More research dosh and more legal immigrants please!

By Max Smolaks 3 Apr 2019  
https://www.theregister.co.uk/2019/04/03/us_semiconductor_plea


The US Semiconductor Industry Association (SIA) has asked the government for 
“bold federal policies” that would enable it to maintain its grip on the 
world’s chip supply.

The American chip-makers are complaining that foreign governments are using 
taxes to pay for semiconductor development and are asking for increased R&D 
funding and preferential treatment for qualified STEM graduates they need, 
among other things.

“Global technology leadership has never been more important, with so much at 
stake for America’s future economic growth and competitiveness,” said Sanjay 
Mehrotra, CEO of Micron and SIA chair for 2019.

“We call upon our leaders in Washington to enact policies that will keep us at 
the forefront of the must-win technologies of the future.”

SIA’s recommendations to the state are outlined in a report titled ‘Winning the 
Future: A Blueprint for Sustained US Leadership in Semiconductor Technology’.  
https://www.semiconductors.org/wp-content/uploads/2019/04/FINAL-SIA-Blueprint-for-web.pdf

Some of the most outrageous ideas within include a suggestion to more than 
triple the annual funding for semiconductor-specific research across federal 
scientific agencies (like NASA and DARPA) from $1.5bn to $5bn, and double 
federal investment in semiconductor-related fields.

Another suggestion is to implement a national education initiative that would 
magically double the number of American STEM graduates over the next 10 years.

The report bemoans the fact that American-born students don’t want anything to 
do with STEM subjects: “International students make up a growing share of 
science and engineering graduate students at US institutions, outnumbering 
their American counterparts by a ratio of nearly four to one.”

To solve the skills issue, SIA recommends that the government removes 
“counterproductive” caps on green cards – only counterproductive when they 
involve STEM graduates, you see.

And finally, SIA would like the federal law enforcement agencies like the FBI 
to treat semiconductor intellectual property theft much more seriously.

The document also extols the virtues of free trade, as essential to the 
well-being of American chip-makers – with semiconductors being the county’s 
fourth-largest export. It also declares support for the United 
States–Mexico–Canada Agreement, which was negotiated by the Trump 
administration to replace the North American Free Trade Agreement (NAFTA).

SIA points out that the US companies has dominated the semiconductor market for 
the past 50 years and are responsible for nearly half of the global market 
share. It doesn’t want the balance of power to change – even though some of its 
members keep a near-monopoly on certain products.

“America’s longstanding leadership in semiconductor technology rests on three 
pillars: US companies’ pioneering research, unparalleled workforce, and 
unfettered ability to sell leading-edge products to customers around the 
world,” said John Neuffer, president and CEO of the association.

“Congress and the Administration should enact policies that reinforce these 
pillars and keep America at the head of the class in semiconductor technology.”

After reading the document, it is clear what kind of policy-maker it is aimed 
at: China, with its lofty aspirations but lack of measurable progress, is 
name-checked six times, while South Korea – the country that today, ranks 
second after the US in the semiconductor market, with 16.2 per cent of the 
global market share – is not mentioned at all.

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