The Semiconductor Industry Association (SIA) has released a new policy agenda titled “Winning the Chip Race” listing the US semiconductor industry’s priorities under the Trump-Vance administration and the 119th Congress.
The agenda outlines key recommendations to bolster the country’s position in semiconductor manufacturing, research, and global competitiveness.
What the chip industry wants from the Trump administration
John Neuffer, SIA President and CEO, emphasized the centrality of semiconductors to the U.S. economy and national security, stating, “To be the world’s economic, technology, and security leader, America must lead the world in semiconductors.”
The agenda emphasizes several policy areas critical to the industry’s growth:
- Manufacturing and R&D: Expanding incentives for U.S.-based chip production and increasing investments in innovation.
- Tax policy: Creating a competitive tax environment to attract research and manufacturing investments.
- Research support: Enhancing federal funding for semiconductor research to maintain U.S. technological leadership.
- Workforce development: Strengthening the talent pipeline by fostering STEM education and reforming immigration policies to attract global talent.
- Trade and supply chain resilience: Building robust global chip supply chains and securing access to emerging markets.
- National security: Implementing targeted export controls and technology restrictions to protect U.S. interests without stifling growth.
- China strategy: Develop measures to maintain an edge over Chinese competitors in innovation and market share.
- Environmental regulation: Streamlining regulations to balance industry growth and sustainability.
Semiconductors power advancements in critical areas such as healthcare, defense, artificial intelligence, and quantum computing. The SIA believes the outlined policies will ensure the U.S. remains a global leader in the technology race of the 21st century.
Recommendations to tackle China
The SIA said that China has established itself as a dominant force in the global semiconductor industry, both as the largest consumer and a significant producer.
In 2023, China accounted for 31% of U.S. semiconductor sales, leveraging its position as the world’s leading electronics manufacturing hub.
To accelerate its technological self-reliance, China launched Phase 3 of its National Integrated Circuit Fund in May 2024, allocating $47.5 billion in subsidies to its domestic semiconductor ecosystem.
This initiative aligns with Beijing’s broader “Made in China 2025” strategy, which aims to build an independent and globally competitive semiconductor industry.
China’s industrial policies, outlined in its 14th Five-Year Plan, focus on reducing reliance on foreign-made chips and achieving domestic self-sufficiency.
Non-market practices and state-driven strategies pose major challenges to U.S. semiconductor companies, particularly in terms of market access and fair competition.
To counter these pressures, the U.S. Semiconductor Industry Association (SIA) recommends proactive measures to address the “China Challenge.”
- Boost domestic capabilities: Strengthen US investments in semiconductor R&D, manufacturing, and workforce development. Enhancing supply chain resilience through domestic and allied infrastructure is a key focus.
- Address unfair practices: Counter market distortions and discriminatory policies using a combination of policy tools and a commitment to reciprocity.
- Collaborate with allies: Work with international partners to advance shared strategic objectives, promote fair competition, and counter coercive practices through coordinated actions.
The SIA emphasizes that these steps are essential to maintaining U.S. leadership in the semiconductor industry and ensuring a level playing field in an increasingly competitive global market.
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