FACT SHEET: The Biden-Harris administration is bringing semiconductor manufacturing back to America

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Intel Announces $20 Billion Ohio Facility; Latest company to invest in the US and strengthen domestic supply chains

Semiconductors are an essential building block in the goods and products Americans use every day. These computer chips are vital to a range of industries and products, from cars to smartphones to medical devices and even vacuum cleaners. They help power our infrastructure from our grid to our broadband. The United States used to be the world leader in global semiconductor manufacturing. But in recent decades, the US has lost its lead – our share of global semiconductor production has fallen from 37 percent to just 12 percent over the past 30 years.

The COVID-19 pandemic has put the spotlight on fragility in the global semiconductor supply chain. Experts estimate that the global chip shortage has lost a full percentage point of US gross domestic product (GDP) over the past year. US auto workers faced furloughs and production shutdowns due to pandemic-related disruptions at Asian semiconductor factories, contributing to a sharp rise in auto prices for US consumers. A third of the annual price increases in the core consumer price index (CPI) last year were due to high car prices alone.

The Biden-Harris administration has been working around the clock with Congress, our international allies and partners, and the private sector to expand U.S. chip manufacturing capacity, bring back key American manufacturing jobs, address chip shortages, and ensure we don’t these disorders are affected again. Intel will today announce a new $20 billion factory outside of Columbus, Ohio.

Today’s announcement is the latest advance in the Biden-Harris administration’s efforts to ramp up domestic manufacturing for critical goods like semiconductors, manage short-term supply chain shortages, revitalize our manufacturing base, and create good jobs here at home. This investment will create 7,000 construction jobs and an additional 3,000 permanent jobs, another sign of the strength of the American economy.

To accelerate that progress, the President is asking Congress to pass legislation to strengthen U.S. research and development and manufacturing for critical supply chains, including semiconductors. The Senate passed the United States Innovation and Competition Act (USICA) in June, and the government is working with the House and Senate to finalize that legislation. It includes full funding for the CHIPS for America Act, which will provide $52 billion to mobilize more private sector investment and America’s continued technological leadership.

Since early 2021, the semiconductor industry has announced nearly $80 billion in new investment in the United States through 2025, according to the Semiconductor Industry Association. These investments will create tens of thousands of high-paying jobs in the US, support US technology leadership, and promote security and resilience in global semiconductor supply chains. In addition to Intel’s announcement today, investments include:

  • A $17 billion Samsung factory in Texas — the result of ongoing government work, including the President’s meeting with President Moon of the Republic of Korea in May.
  • Texas Instruments invests up to $30 billion in Texas;
  • A new Global Foundries factory in upstate New York;
  • Cree’s intention to spend $1 billion to expand an existing facility in North Carolina;
  • Investments by SK Group in a new research and development center in the USA; and
  • Micron to expand US production.

The Biden-Harris administration has led a slew of government efforts to secure these critical investments.

  • Shortly after taking office, President Biden prioritized domestic semiconductor manufacturing and research and development (R&D) and identified semiconductor supply chains as the centerpiece of his national supply chain initiative launched in February 2021.
  • In June, the Commerce Department issued a set of recommendations on how to secure the US semiconductor supply chain. Since then, Secretary of Commerce Gina Raimondo, National Security Advisor Jake Sullivan and Director of the National Economic Council Brian Deese have held regular follow-up meetings with industry leaders and diplomatic partners and allies to advance practical solutions to strengthen the global semiconductor supply chain. As part of that effort, the White House has met with the CEOs of several semiconductor companies.
  • In October, on the sidelines of the G20 in Italy, President Biden hosted a global supply chain summit with leaders from 14 countries and the European Union to discuss supply chain disruptions with a focus on semiconductors. The President also focused on semiconductor supply chain resilience in his bilateral meetings with foreign leaders and directed the government to work with Europe to improve global supply chains through the US-EU Trade and Technology Council (TTC) and through the focus of the Quad strengthen critical technologies.

Investing in new foundries is critical to the long-term resilience of our semiconductor supply chains. At the same time, the government is working to address the short-term disruptions in semiconductor supply chains that have contributed to challenges in a number of manufacturing sectors and price hikes for US consumers.

  • In April 2021, the President hosted a virtual summit with leading companies that make and use chips to find practical ways to discuss actions they could take to address the disruptions resulting from the global chip shortage. By the end of the year, participants had announced new partnerships between semiconductor companies and US automakers to strengthen the resilience of the automotive chip supply chain.
  • Over the summer, the government worked with governments and companies around the world to mitigate COVID-related disruptions in semiconductor manufacturing, and in September 2021 established a global early warning system to detect and address pandemic-related disruptions.
  • The Department of Commerce promoted transparency in semiconductor supply chains, including through a fall 2021 chip shortage survey to identify key bottlenecks in semiconductor supply chains. Over 150 responses were received from all parts of the supply chain – manufacturers, consumers and intermediaries – including responses from almost every major semiconductor manufacturer and the major automakers. The results of the survey will be publicly announced by the end of January 2021.
  • The US Department of Defense has used Defense Production Act agencies to strengthen supply chains for key defense-related semiconductors.

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