Racine Journal Times, Steil: U.S. Cannot Depend on Foreign Semiconductor Chip Production

If we’ve learned anything from the supply chain shortages in the last few months, much less the last two years, it’s that we need to encourage production of goods in the United States. While it is obviously good for America to have most goods produced here, there are some essential items we simply cannot continue to be dependent on from foreign countries. At the top of the list of what needs to be produced in the United States is semiconductor chips.

Semiconductor chips are the “brains” of electronic devices. They enable nearly every commercial, industrial, and military system. A lack of chips has slowed production of automobiles in the U.S. They are a critical piece to medical technologies, and our defense systems, such as aircraft and weapons systems. Chips are critical to both our economy and our national security.

In the 1950s, the United States was a leader in the manufacturing of semiconductors. Despite this past leadership, we now produce about 10% of the world’s needs. Taiwan, Japan, and South Korea are now dominating chip manufacturing. As the world becomes more reliant on semiconductors, the U.S. must regain our domestic supply.

There are several proposals before Congress to increase domestic production. Some focus on stimulus payments, for example the CHIPS Act would provide $52 billion in federal investment. These proposals are focused on incentivizing semiconductor manufacturing facilities here in the U.S. rather than abroad.

I support legislation that addresses the bureaucratic delays preventing investment in chip manufacturing in the United States. This bill will allow producers to get up and running quickly. Manufacturers would be able to track where they stand in the permitting process in real time. This bill uses the federal permitting program called FAST-41, which allows us to do this quickly. It additionally requires federal agencies to develop and maintain a coordinated, project specific timetable for all permitting actions. This would dramatically reduce the time required to build a new manufacturing facility and allows these products to move to market faster.

In the 1950s, you may have purchased an item from the Sears catalogue, mailed in a check, and hoped the item showed up six weeks later. Today, when you order an item online, you can see when the order has been received, where it’s headed, and when it will be delivered. We should be providing employers eager to invest in the U.S. with the same transparency from the federal government. That is what the bill I support does. Under this proposal, potential chip manufacturers could track where they stand in the permitting process, just like how you track your online order. With this transparency, the government will be forced to move quickly.

From the pandemic, to the supply chain crisis, and now Russia’s unjust invasion of Ukraine, it is clear the United States has become too reliant on foreign countries for resources and supplies. We need to become a leader on products we rely on. We cannot rely on foreign countries for our critical materials.

America needs domestic production of semiconductor chips. It is a matter of national security and domestic security. As Congress considers legislation to encourage semiconductor manufacturing, I am encouraging Congress to incorporate legislation that will streamline, accelerate, and improve the United States’ ability to produce chips in any final legislative package.