It is no secret that the semiconductor industry is under pressure. Countless manufacturers are currently struggling to keep up with increasing market demand. In an effort to rectify this, or at least get on the right track, the Semiconductor Industry Association (SIA) has drafted a compelling letter to newly appointed US President Biden, urging him to reach out on this issue.

The letter was signed by Lisa Su of AMD and Bob Swan, current CEO of Intel (soon to retire), as well as executives and CEOs from Western Digital, IBM, Nvidia, Broadcom, Qualcomm, and others.

According to CRN, SIA, on behalf of those listed above, is requesting funding through investments and initiatives to strengthen the semiconductor manufacturing and research industry. This type of funding is outlined in the CHIPS for America Act as part of the defense bill passed in January 2021 and has already been OK'd. But apparently a little more push is needed.

Over the past 31 years, the U.S. share of global semiconductor manufacturing has dropped from 31% to just 12%, with foreign incentives making up some of the difference. Semiconductors are vital to the U.S. economy. Without this funding, Biden's economic recovery and infrastructure goals would remain unattainable.

There is a real sense of urgency in the letter, with the executives urging Biden to strengthen his plan with "incentives for semiconductor manufacturing in the form of grants and/or tax credits, and substantial funding for basic and applied semiconductor research."

Currently, the letter explains, the U.S. industry remains "uncompetitive in attracting investment in new factory construction" because much of its strength comes from foreign governments and incentives. The letter notes that "our technological leadership is at stake in the race for dominance in future technologies such as artificial intelligence, 5G/6G, and quantum computing." The letter also expresses concern about "national security and supply chain resiliency." [The letter emphasizes the potentially disturbing consequences for the United States if this matter is put on the back burner.