Semiconductor Industry Needs More Than CHIPS Act to Succeed.

• Author: Ashbridge, Emily
• Position: NDIA POLICY POINTS

President Joe Biden in August signed the CHIPS and Science Act into law. This act, which sets aside $52 billion in government subsidies to bring semiconductor manufacturing to the United States and away from current East Asian production hubs, marks a significant milestone in strengthening U.S. technological competitiveness.

However, as significant as these investments are, additional action is required to ensure semiconductor companies have the workforce they need to expand domestic production. Here, U.S. allies and partners can help.

While the United States pioneered chipmaking, domestic production has waned in recent years. Since 1990, U.S. semiconductor manufacturing capacity has dropped significantly. During this same period, these chips have become essential to American life. Semiconductors not only underpin daily electronics, from cell phones to cars, but have military applications that pose critical national security threats if there is a chip shortage.

The CHIPS Act is designed to shore up U.S. vulnerabilities. By increasing domestic manufacturing of semiconductors, the United States aims to become more resilient to supply chain disruptions and the significant security implications that come with them, like those that occurred during the COVID-19 pandemic.

Further, as China steps up its aggression toward Taiwan--where a vast majority of the world's most advanced chips are produced--Washington feels pressure to build resiliency in the event of East Asia production grinding to a halt.

While the CHIPS Act is a significant step in strengthening supply chain security, U.S. capacity to manufacture chips faces an unexpected barrier: human capital. For high-tech industries, a small yet critical core of high-skilled workers is essential. However, decades of declining investment in science, technology, engineering and math education have produced a critical shortage of qualified workers.

In 2015, White House economic projections estimated a need for one million more STEM professionals in the United States for the country to maintain its preeminence in science and technology. The nation missed this mark, and the demand for STEM professionals has only increased.

The talent bottleneck is particularly visible within semiconductor applications. To meet capacity needs for only the critical semiconductor applications, the United States will need to increase its current workforce.

Semiconductor manufacturers are grappling with an insufficient supply...