Will the US Introduce a Second Semiconductor Support Act? "It Shouldn't End with the First"
"The semiconductor industry reconstruction should not end with the 1st Semiconductor Support Act (CSA)." In the United States, which has launched massive financial support to regain semiconductor dominance, voices calling for a 2nd support bill are growing louder. The 2nd support bill is expected to focus more on the 'supply chain' aspect.
Yahoo Finance reported on the 31st of last month (local time) that discussions about pushing for the 2nd support bill are already underway in the U.S. A representative example is Pat Gelsinger, CEO of Intel, considered the biggest beneficiary of the CSA, who recently publicly stated the need for a second round of funding. In an interview with Yahoo Finance, he emphasized, "The 2nd support bill should have characteristics similar to the CSA but focus more on the supply chain."
Gina Raimondo, Secretary of Commerce, also expressed agreement with this direction, saying, "Whether it’s 'CHIPs 2' or another name, continuous investment is necessary." Senator Mark Kelly of Arizona, a Democrat who participated in the bill negotiations, said, "We need to strengthen the supply chain further," adding, "We will evaluate how the CSA is progressing and find out what is needed."
Regarded as one of the Biden administration’s greatest legislative achievements, the CSA aims to encourage semiconductor investment within the U.S. by providing a total of $52.7 billion over five years, including $39 billion in semiconductor production subsidies for companies building manufacturing facilities domestically and $13.2 billion in research and development (R&D) support. So far, more than 620 letters of intent for investment have been received from companies, and support plans for four companies?Intel, BAE Systems, Microchip Technology, and GlobalFoundries?have been announced.
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Kaitlyn Legaki, founder of Poconos Public Affairs and a former Biden administration official, said, "The demand for subsidies has already far exceeded the available $5 billion level," adding, "If we wait 3 to 5 years to start discussions on the 2nd support bill, it will be too late." Considering the speed of bill passage in Washington D.C., she explained that the 2nd support bill needs to be pushed forward quickly. It took more than 18 months from the initial introduction of the CSA to President Biden’s signing.
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