“Strict enforcement” of accessibility deadlines for user interfaces on some digital devices wouldn’t be “the most constructive approach” due to supply chain woes, said CTA and the Information Technology Industry Council in a call with aides to FCC Chairwoman Jessica Rosenworcel Thursday, per a filing in docket 21-140. Disruptions created by the COVID-19 pandemic, including to semiconductor availability, could make it hard for some entities to meet a Dec. 20 accessibility deadline for “limited capability digital apparatus,” said the filing: “CTA members facing these constraints are working diligently to come into compliance as soon as possible given circumstances largely outside their control.” Earlier this month, the American Council of the Blind said the requirements have been pending for eight years and should take effect “without delay.”
Sen. Elizabeth Warren, D-Mass., urged Commerce Secretary Gina Raimondo to use funding for the Creating Helpful Incentives to Produce Semiconductors for America Act included in the FY 2021 National Defense Authorization Act and additional money targeted for inclusion in legislation under House-Senate negotiation to “push back against … consolidation” in that industry. The chambers are working to produce a conference bill marrying elements of the Senate-passed U.S. Innovation and Competition Act (S-1260), which includes $52 billion to boost chipmaking, and a set of similar House-passed measures. Senate Majority Leader Chuck Schumer, D-N.Y., abandoned efforts (see 2111180073) to include S-1260 in the FY 2022 NDAA (S-1605), which the chamber passed Wednesday 88-11. President Joe Biden is expected to sign that measure. “The semiconductor industry has undergone significant consolidation in the last decade,” which “has reduced competition” and “has harmed consumers by enabling these dominant companies to increase prices and underinvest in key capabilities, which has the effect of also reducing product innovation and product quality,” Warren said in a letter to Raimondo Thursday. Warren praised the recent FTC lawsuit to block Nvidia buying Arm from Softbank (see 2112030002), but believes “the U.S. government has other tools beyond antitrust enforcement that could increase competition, protect consumers and workers, and promote supply-chain resiliency.” She cited S-1260’s proposed $19 billion in FY 2022 and $5 billion in annual funding for FY 2023-26 for incentivizing U.S. chip manufacturing.
Commerce Committee leaders believe there’s a strong chance the Senate can confirm NTIA administrator nominee Alan Davidson before the 117th Congress' second session begins in January, after the panel advanced him Wednesday on a bipartisan voice vote, as expected (see 2112140074). Ranking member Roger Wicker of Mississippi and other Republicans are, meanwhile, beginning to push for the panel to hold another confirmation hearing for Democratic FCC nominee Gigi Sohn in 2022 if the committee doesn’t move forward this month on a vote to advance her, as is generally expected. Commerce didn’t include Sohn in Wednesday's markup amid resistance from several committee Democrats (see 2112090058).
CTA hires American Chemistry Council’s Ed Brzytwa, also ex-Information Technology Industry Council, as vice president-international trade, succeeding departed Sage Chandler ... Among FCC staffers whom Chairwoman Jessica Rosenworcel announced Tuesday are retiring: FCC Continuity Manager.Bart Bartholomew; and, from the Media Bureau, David Roberts, attorney-adviser in the Video Division, and Shontail Ennis, administrative management specialist on the bureau’s management and resources staff.
The Senate Commerce Committee is expected to advance for a floor vote NTIA administrator nominee Alan Davidson with bipartisan support on Wednesday despite some panel Republicans' last-minute misgivings. The GOP concerns could make it more difficult for chamber leaders to quickly move to a final floor vote. Davidson got no significant fire from Commerce members during his confirmation hearing earlier this month amid a more intense focus on Democratic FCC nominee Gigi Sohn (see 2112010043). The committee’s executive session on Davidson, the Securing Semiconductor Supply Chains Act (S-3309) and other Biden administration nominees begins at 10 a.m. in 253 Russell (see 2112090058).
A Senate bill is intended to increase U.S. chip production and supply chains. Introduced by Marsha Blackburn, R-Tenn.; Gary Peters, D-Mich.; Rob Portman, R-Ohio; and Mark Kelly, D-Ariz., the Investing in Domestic Semiconductor Manufacturing Act would ensure federal incentives to “boost domestic semiconductor manufacturing include U.S. suppliers that produce the materials and manufacturing equipment that enable semiconductor manufacturing,” they said. The legislation is related to the Creating Helpful Incentives to Produce Semiconductors for America Act. It would “clarify eligibility for the semiconductor Financial Assistance Program at the Department of Commerce,” said Portman, “ensuring that semiconductor equipment and materials manufacturers have a seat at the table.”
The “harmful” Section 301 tariffs on Chinese semiconductor imports “are exacerbating the ongoing chip shortage and slowing our economy,” and they should be eliminated, blogged the Semiconductor Industry Association, following up on Dec. 1 comments urging the Office of the U.S. Trade Representative to reinstate previously extended tariff exclusions. The tariffs, “in their most direct effect,” add 25% to the cost of covered semiconductors, and subsequently contribute to inflationary price increases driven by global shortages and rising demand, said SIA Wednesday. The tariffs “are disproportionately harming the U.S. semiconductor industry and broader U.S. interests, all while failing to put real pressure on the Chinese government to change its unfair trade practices,” it said. USTR didn't comment Thursday.
Senate Commerce Committee Democratic leaders hope to blunt the impact of delayed consideration of FCC nominee Gigi Sohn by resetting a vote to advance her as early as January. The committee moved Wednesday not to include Sohn on the docket for its Dec. 15 executive session (see 2112080078) amid continued wavering among a handful of panel Democrats. Commerce Republicans are eyeing whether to press the committee to go through the entire confirmations process again on Sohn. The delay could lengthen the amount of additional time the FCC will remain in a 2-2 stalemate; the Senate confirmed Chairwoman Jessica Rosenworcel this week on a bipartisan 68-31 vote (see 2112070071).
The semiconductor industry is in a “renewed drive” amid the chip crunch to install more factory capacity at “the mature nodes” for automotive, industrial and IoT applications, and “as the chip market leads, the photomask market follows,” said Photronics CEO Peter Kirlin on a call Wednesday for fiscal Q4 ended Oct. 31. Photronics manufactures photomasks for producing chips and flat panels, and analysts view the company as a bellwether of semiconductor and display industry health. The company said Q1 revenue and profit may rise sequentially; Q4 revenue was $181.3 million, "the third consecutive quarterly record, up 6% sequentially and 21% year-over-year." The stock soared 26% higher Wednesday, closing at $17.91.
The International Trade Commission ordered a Tariff Act Section 337 investigation into allegations in a Nov. 1 complaint that MediaTek chipsets and downstream streaming media and smart home products containing them from Amazon, Belkin and Linksys infringe five NXP Semiconductors patents, said Tuesday’s Federal Register. The complaint seeks a limited exclusion order and cease and desist orders against the allegedly infringing products. None of the named respondents commented.