U.S. Senators Discuss Year 1 CHIPS and Science Act Investments
Senate Commerce, Science, and Transportation Committee
CHIPS and Science Implementation and Oversight
October 4, 2023
In a recent Senate hearing, several senators, government officials, and experts gathered to discuss the critical importance of investments in the semiconductor industry and related technologies. The meeting highlighted the challenges and opportunities facing the industry and the broader American economy. Let's delve into some of the key takeaways from the discussion.
Sen. Maria Cantwell (D-WA, Chair) Emphasizes Private Sector Investments Senator Cantwell highlighted the significance of private sector investments, noting that approximately $200 billion has been allocated. These investments aim to 'de-risk' the semiconductor supply chain, reducing vulnerabilities and strengthening national security.
Cantwell also stressed the need to develop the workforce's skills to match the pace of technological innovations. She mentioned that an additional 67,000 workers will be needed in the semiconductor industry by 2030 to meet the growing demand.
Sen. Ted Cruz (R-TX, Ranking Member) on National Security Concerns Senator Cruz drew attention to the national security concerns associated with the semiconductor industry. Most of our military technology relies on semiconductors that are not manufactured in the United States, raising concerns about supply chain vulnerabilities. Cruz is working to exclude semiconductor projects from the National Environmental Policy Act (NEPA) regulations to expedite their implementation.
Cruz also expressed criticism regarding funding allocation from the National Science Foundation (NSF) towards addressing misinformation and disinformation issues.
Secretary Gina Raimondo Announces Funding Secretary Gina Raimondo, from the Department of Commerce, disclosed the National Semiconductor Technology Center (NSCT) launch this fall* and the allocation of $50 billion for semiconductor manufacturing. Over 100 applications are currently under review. Additionally, she mentioned that 400 applications have been received for technology hubs, and winners will be announced this fall.
Raimondo highlighted the disruptive impact of a semiconductor shutdown on various sectors, emphasizing the need for continued investments and support.
Dr. Sethuraman Panchanathan's Insights Dr. Sethuraman Panchanathan, the Director of the NSF, discussed the Regional NSF Engines, which received 700 concept papers and resulted in a $200 million investment this year. Panchanathan emphasized the importance of geographical diversity and exceeded EPSCOR (Established Program to Stimulate Competitive Research) targets for FY23.
He also stressed the commitment to funding exploratory-based research and shared Senator Cantwell's vision of "Innovation anywhere. Opportunities Everywhere."
Key Takeaways from Q&A Session
During the question and answer session, senators raised various crucial points and the witnesses were able to highlight some of their top priorities moving forward with CHIPS and Science Act implementation.
The lower-than-authorized appropriations for CHIPS and Science research programs was a key theme centered by both Secretary Raimondo and Dr. Panchanathan. The CHIPS and Science Act authorized increased research funding to NSF, Department of Energy, and beyond; however, Congress did not meet those authorized levels in the FY23 spending package.
Senator Brian Schatz (D-HI) emphasized the importance of appropriations aligned with authorization in CHIPS and Science.
Senator Deb Fischer (R-NE) inquired about oversight measures, and Panchanathan emphasized the need for proper funding.
Senator Todd Young (R-IN) supported increased appropriations and the Create AI Act.
Senator Cantwell underscored the importance of a comprehensive plan for national security threats and strategies to pitch these programs to appropriators.
Senators reiterated needs for rural America to be engaged in innovation and technology. Secretary Raimondo and Dr. Panchanathan emphasized that their agencies were making every effort to assure that all states and regions have equitable access to CHIPS and Science Act resources.
Senator Jon Tester (D-MT) committed to funding technology hubs in rural communities and stressed the need for more funding.
Senator John Thune (R-SD) discussed AI standards and rural broadband.
Senator Ted Budd (R-NC) discussed the need for rural broadband connections and their funding.
From environmental regulations to workforce development, Senators emphasized the need to enhance public-private partnerships and reduce regulatory burdens to spur innovation with CHIPS and Science Act resources.
Senator Amy Klobuchar (D-MN) focused on workforce development and public-private partnerships to enhance innovation.
Senator Gary Peters (D-MI) highlighted the importance of supporting innovation in the automotive industry.
Senator Peter Welch (D-VT) emphasized the need to protect development to commercialization.
Senator Eric Schmitt (R-MO) discussed the balancing act of spectrum management and concerns about climate change mitigation.
Senator Ed Markey (D-MA) stressed the impact of the semiconductor industry on climate change and sustainability goals.
Senator Tammy Baldwin (D-WI) proposed the Invent Here, Make Here Act.
Senator Shelley Moore Capito (R-WV) questioned the selective exemption of CHIPS projects from NEPA regulations.
Senator Kyrsten Sinema (I-AZ) appreciated the role of science components in the legislation and their impact on workforce resources.
In summary, the discussions highlighted the urgent need for investments in the semiconductor industry, national security concerns, and the importance of workforce development and private-public partnerships. The dialogue also addressed various challenges and opportunities, making it clear that the semiconductor industry plays a critical role in America's economic and national security interests.
*On Monday, October 23, President Biden and Commerce Secretary Raimondo announced the establishment of 31 regional innovation and technology hubs, as outlined in the CHIPS and Science Act of 2022. The tech hubs have a presence in 32 states and Puerto Rico and are designed to spur innovation and create new technology-driven jobs around the country.