January semiconductor sales increased 13.2% globally from a year earlier to $40 billion, and were up 1% sequentially from December, reported the Semiconductor Industry Association Monday. “Global semiconductor production is on the rise to meet increasing demand and ease the ongoing chip shortage affecting the auto sector and others, and annual sales are projected to increase in 2021,” said SIA CEO John Neuffer. Year-on-year sales in the Americas were up 15.4% in January, second only to Asia Pacific (up 16%), said SIA. Month-on-month sales were down 3% in the Americas and 1% in Japan but up by single digits in all other regions, it said.
The federal government should commit $35 billion over five years for semiconductor R&D, manufacturing and other artificial intelligence-related investments, the National Security Commission on Artificial Intelligence urged Monday. It recommended $15 billion for federal microelectronics manufacturing grants, $12 billion for microelectronics R&D, $7 billion for microelectronics infrastructure and $500 million for DOD trusted and assured microelectronics. The Semiconductor Industry Association welcomed the report, noting its call for “a national microelectronics strategy, revitalizing domestic microelectronics fabrication, and ramping up microelectronics research.” President Joe Biden should follow the report’s recommendation to create a national AI strategy, said Information Technology and Innovation Foundation Center for Data Innovation policy analyst Hodan Omaar.
Consider including ISPs "in measures to address the chip shortage, support initiatives that will expand domestic innovation and investment in semiconductor development and manufacturing facilities for all industries and ensure coordination across government and with industry partners on supply chain matters,” four ISP groups urged President Joe Biden Thursday. Biden signed an executive order Wednesday, as expected (see 2102240065), that directs agencies do a 100-day comprehensive review of U.S. supply chains for semiconductors and three other products. It directs the Commerce Department to do a one-year review of the U.S. supply chain for information and communications technology. “Take a whole-of-government approach” in its review of U.S. supply chain issues “and leverage existing public-private partnerships addressing specific supply chain risks,” ACA Connects, CTIA, NCTA and USTelecom wrote Biden. “Work with Congress to fully fund” the Creating Helpful Incentives to Produce Semiconductors for America Act. The measure passed in the FY 2021 National Defense Authorization Act (see 2101030002).
Provide an open radio access network push for 5G, stopping short of a mandate, NTIA heard at virtual “listening session” Thursday, its second on the topic (see 2101280053). FCC members will vote March 17 on an ORAN notice of inquiry (see 2102240063).
Electronic Privacy Information Center board advances interim Executive Director Alan Butler to executive director ... TechNet taps Steve Kidera from CompTIA as director-communications and Evan Gillissie from Brownstein Hyatt as government relations and communications coordinator ... Computer & Communications Industry Association adds ex-State Department Deputy Chief Economist Trevor Wagener as director-research and economics and Alyssa Doom, ex-Pew Charitable Trusts, as state policy director.
President Joe Biden was expected to have signed off Wednesday night on an executive order aimed at improving the resiliency of the supply chain for semiconductors and other “essential products.” The EO would direct federal agencies to conduct a 100-day comprehensive review of U.S. supply chains for semiconductors and three other products, the White House said. It would direct a one-year review of the U.S. supply chain for information and communications technology. Agencies should recommend ways to improve supply chain resiliency, the White House said. The Information Technology Industry Council and Semiconductor Industry Association praised the coming document. Senate Intelligence Committee Chairman Mark Warner, D-Va., and 11 other lawmakers met with Biden and Vice President Kamala Harris to discuss supply chain resiliency. Sen. John Cornyn, R-Texas, told reporters he focused on funding the Creating Helpful Incentives to Produce Semiconductors for America Act. The measure, which passed as part of the FY 2021 National Defense Authorization Act (see 2101030002), authorizes federal incentives to promote semiconductor manufacturing and public-sector investments in semiconductor R&D. Sen. Maggie Hassan, D-N.H., another meeting participant, said in a statement that the U.S. must “bring home the manufacturing of advanced technologies, including for 5G infrastructure, in order to address potential shortages and vulnerabilities.”
Senate Majority Leader Chuck Schumer of New York said Tuesday that he plans to lead Democrats in bowing legislation aimed at using investment in 5G and other emerging technologies to counter Chinese advances. Senate Democrats’ emerging tech package needs to “address America’s short-term and long-term plans to protect the semiconductor supply chain, and to keep us No. 1 in things like [artificial intelligence], 5G, quantum computing” and data storage, Schumer told a news conference. “We can’t let China get ahead of us in chip production.” Schumer expects the Senate to be ready to consider the measure on the floor this spring. “We need to get a bill like this to” President Joe Biden’s “desk quickly to protect America’s long-term economic and national security,” he said. The Semiconductor Industry Association praised Schumer’s plan. Senate Armed Services Committee Chairman Jack Reed, D-R.I., raised concerns during a Tuesday hearing about China’s “aggressive attempts to undercut our current technological superiority.” Lawmakers “must also be concerned about the strength of our national research and innovation enterprise, including the workforce, the health of the manufacturing and industrial base, and the infrastructure that we need to support technology development,” he said.
CTIA representatives deemed it important to “continu[e] to expand the spectrum pipeline,” in calls with aides to FCC acting Chairwoman Jessica Rosenworcel and Commissioner Brendan Carr, said a filing posted Monday in docket 19-348. “CTIA identified the 3 GHz band as a 5G priority band, which would enable device, network equipment, and chip manufacturers to build to globally harmonized, international specifications.”
The Bureau of Industry and Security is buried within an organization “hostile to the aggressive use of export controls,” and should be moved from the Commerce Department to the State Department, which puts national security first, said Sen. Tom Cotton, R-Ark., Thursday during a Reagan Presidential Foundation program. Cotton wants the Office of Foreign Assets Control (see 2102190012) expanded and sanctions applied to those who steal intellectual property from U.S. firms and to those companies that profit from that theft. “Huawei has been effectively cut off from most high-end U.S. chips; the United States should ensure ZTE is cut off, as well. When the next Huawei or ZTE arises, the government should deal with it in the same manner,” he wrote. He said the U.S. should aim to bankrupt Huawei and ZTE through further sanctions and cut them off from the U.S. financial system. Cotton, who co-sponsored the Creating Helpful Incentives to Produce Semiconductors for America Act (see 2102180023), said work is underway to fund the act. Commerce, Huawei, ZTE and the Chinese Embassy didn't comment Friday.
The administration should work with Congress to “reinvigorate” U.S. semiconductor manufacturing and increase semiconductor R&D by funding the initiatives in the Creating Helpful Incentives to Produce Semiconductors (Chips) for America Act, the Semiconductor Industry Association, Information Technology Industry Council, CTIA, U.S. Chamber of Commerce, Telecommunications Industry Association and 11 other groups wrote President Joe Biden Thursday. “Strengthening the U.S. position in semiconductor research, design, and manufacturing is a national priority.” They seek “robust funding for these programs." The White House didn’t comment. The Chips Act is part of the FY 2021 National Defense Authorization Act (see 2101030002).