RESEARCH TRIANGLE PARK – A bill that could mean $25 billion worth of investment for the US semiconductor industry that is backed by both IBM and Cree is still alive.
So says NY Senator Chuck Schumer.
“The economic and national security risks posed by relying too heavily on foreign semiconductor suppliers cannot be ignored, and upstate New York, which has a robust semiconductor industry, is the perfect place to grow domestic semiconductor R&D and manufacturing by leaps and bounds,” Schumer said in a statement on Monday.
According to Schumer, the legilsation known as the American Foundaries Act is included in the 2021 defense budget.
- MORE COVERAGE: Read Chuck Schumer’s original announcement
Cree is building a $1 billion-plus factory in New York – a facility originally planned for North Carolina before New York politicos lured it away with the promise of tax incentives.
IBM maintains many of its operations in New York. A hub of chip facilities owned by Global Foundaries were once IBM properties.
Cree and IBM have advocated passage of the bill.
“Cree continues to invest aggressively in silicon carbide manufacturing and research in order to support the growing, global demand for our technologies, and we believe advanced semiconductor manufacturing is essential to leading the acceleration of critical next-generation technologies,” Cree CEO Gregg Lowe said when the bill was announced earlier this year. “Like many other semiconductor companies in the U.S., we believe this legislation would provide necessary investments that move our industry and economy forward and we commend its introduction.”
IBM Executive Vice President John Kelly said Big Blue backed the bill “because this important legislation would sustain American leadership in semiconductor technology and establish a national strategy to move it forward.”
Schumer noted in the bill is designed to “ensure our domestic microelectronics industry can safely and securely supply our military, intelligence agencies, and other government needs. This is essential to our national security and to U.S. leadership in this critical industry.”
However, the Pentagon bill still faces the chances of being vetoed by President Trump who has demanded that a defense package must include repeal of the so-called “Section 230” that protects social media firms from liability for content posted by users.
