"Government Semiconductor Investing: A National Security Imperative"

Ladies and Gentlemen, let me tell you something: GOVERNMENT INVESTING IN SEMICONDUCTORS IS NOT JUST ABOUT ECONOMICS—IT'S ABOUT NATIONAL SECURITY! The CHIPS for America initiative is a game-changer, and you need to understand why. This isn't just about making chips; it's about making sure our military, our intelligence, and our critical infrastructure are secure. Let's dive in!

First things first: THE UNITED STATES CURRENTLY MAKES NONE OF THE WORLD’S MOST ADVANCED CHIPS. That's a vulnerability we can't afford, especially when you consider the defense applications that rely on these chips. Hypersonic weapons, drones, satellites—all of these need advanced semiconductors to function. And let's not forget about AI, which is becoming increasingly crucial for defense. The CHIPS for America initiative is investing in our capacity to produce these chips right here at home, ensuring that our defense industrial base is resilient and secure.

Now, let's talk about the economic and strategic advantages. DOMESTIC SEMICONDUCTOR MANUFACTURING DRIVES JOB CREATION AND ECONOMIC GROWTH. The semiconductor industry directly employs nearly 338,000 people in America and supports more than 1.9 million additional jobs. With greater federal investment, this number could skyrocket. But it's not just about jobs—it's about reducing our dependence on foreign suppliers and enhancing our resilience to supply chain disruptions. The COVID-19 pandemic exposed significant vulnerabilities in the semiconductor industry, and initiatives like the CHIPS for America initiative are addressing these issues head-on.

But it's not just the U.S. that's ramping up investments. COUNTRIES AROUND THE WORLD ARE POURING MONEY INTO THEIR SEMICONDUCTOR INDUSTRIES. China, Korea, Europe—they're all recognizing the strategic importance of the chip sector. China launched its chip fund back in 2014 and announced $48 billion for phase three in May 2024. The Korean government is offering subsidies and regulatory assistance, and Europe has launched multiple initiatives to enhance its semiconductor capabilities. This is a global trend, and you need to be aware of it.

So, what measures are in place to ensure long-term supply chain resilience? THE CHIPS PROGRAM OFFICE (CPO) EVALUATES APPLICATIONS BASED ON CRITERIA THAT INCLUDE ECONOMIC AND NATIONAL SECURITY, COMMERCIAL VIABILITY, AND FINANCIAL STRENGTH. Projects that support both national security missions and commercial markets are more likely to satisfy CPO objectives. Additionally, the CPO implements guardrails mandated by Congress to prevent CHIPS Incentives Program funds from supporting the semiconductor industries of foreign countries of concern. These guardrails prohibit recipients from engaging in significant transactions involving the material expansion of semiconductor manufacturing capacity in countries of concern for 10 years after the date of the award, subject to limited exceptions authorized in law.

In summary, GOVERNMENT INVESTING IN SEMICONDUCTORS IS VITAL FOR NATIONAL SECURITY. It ensures a reliable and secure supply of advanced chips, drives job creation and economic growth, and enhances our resilience to supply chain disruptions. The CHIPS for America initiative and similar global efforts are addressing the vulnerabilities exposed by the COVID-19 pandemic and implementing measures to ensure long-term supply chain resilience. So, do yourself a favor—STAY INFORMED AND INVEST WISELY!