U.S. Chip Exports Plummet by 14%

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According to reports, in order to maintain America's leading position in semiconductors, the United States needs robust trade policies to complement domestic efforts to accelerate development. This was the main message of public comments submitted by the SIA on April 22 in response to the U.S. Trade Representative's request for information on how trade policies can enhance U.S. supply chain resilience.

President Biden signed into law the bipartisan Chips and Science Act in 2022 to incentivize the growth of the U.S. semiconductor ecosystem, strengthen its supply chain, and ensure the U.S. semiconductor industry remains globally competitive. Ultimately, this is a bold plan aimed at bringing more chip manufacturing back to the United States.

This historic move has already yielded significant results. Since the passage of the CHIPS Act, companies across the semiconductor ecosystem have announced over 80 new projects in the United States, with private investment now approaching $5 trillion. However, to ensure the long-term competitiveness of U.S. semiconductor companies and make the Chips Act more effective, a larger global market is needed to allow SIA members to sell chips domestically that they manufacture domestically.

In fact, 75% of the revenue for U.S.-headquartered semiconductor companies comes from sales to foreign markets. Unfortunately, despite U.S. government efforts to foster greater economic supply chain integration and resilience through the Indo-Pacific Economic Framework (IPEF) and the Americas Prosperity Partnership (APEP), U.S. chip exports declined by 14% last year.

SIA strongly recommends that the Office of the U.S. Trade Representative effectively utilize trade policies and pursue market-opening initiatives to stimulate global demand for U.S. semiconductors (as well as other goods manufactured domestically). Similarly, SIA encourages the U.S. Trade Representative to advocate for U.S. companies to re-engage in countering market access barriers and regulations imposed by other governments, which unfairly skew the competitive environment and disadvantage the U.S. semiconductor industry.

When navigating the twists and turns of global trade and technology, it's evident that the future of the U.S. semiconductor industry depends not only on domestic investment but also on prudent strategic international partnerships and wise trade policies aimed at opening new markets for American chips.

SIA expresses its anticipation to continue collaborating with the U.S. government and other stakeholders, advocating for new ideas to pave the way for a more resilient, competitive, and sustainable U.S. semiconductor industry, driving future astonishing innovations.

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