Bipartisan Innovation Act would help Idaho semiconductor manufacturers be competitive

The U.S. is a nation built upon innovation — American innovators pioneered essential technology foundational to our modern lives for decades. In fact, the semiconductor was first manufactured by Americans, we invented the industry but now we’re falling behind. Unless we act soon, the future of American innovation could face serious consequences.

Today, 92% of the world’s most advanced logic semiconductors are manufactured in Taiwan, which has prompted supply chain complications here at home, including a shortage of semiconductor memory that could last as late as 2024. Insufficient investment in domestic semiconductor manufacturing coupled with the lack of funding for new research has stifled our technology production — both in Idaho and across the country.

The semiconductor industry is fast-growing and critical in Idaho. Semiconductor memory and solar power semiconductors were Idaho’s first and third largest exports, respectively, in 2018.

However, we’ve seen how a semiconductor shortage, like the one Idaho’s car dealerships have faced over the past two years, severely impedes our economy. Workers in food processing, the medical field, and agricultural and timber industries suffer during a semiconductor chip shortage. A shortage of semiconductors limits the production of essential technology, like cars, cellphones and farming equipment while concurrently leading to an increase in cost for those goods, further exacerbating the already unprecedented inflation levels our nation is facing. Investment in domestic semiconductor manufacturing is key to the development of technology that powers our future, ensuring our workforce benefits from a stable income, and the prevention of future supply chain disruptions.

The state of Idaho would benefit greatly from the inclusion of a semiconductor investment tax credit and full funding of the CHIPS Act in the Bipartisan Innovation Act. Major semiconductor manufacturers in our state, like Micron Technology, house facilities in Idaho and employ thousands of Idahoans. As the only domestic manufacturer of semiconductor memory, the increased funding would allow Micron to continue to benefit our state, support our workforce, and add to the $2.9 billion in sales activity they already produce in Idaho annually.

In order to achieve these outcomes and prevent future shortages, we must call on our legislators to invest in American business and technology by sending the Bipartisan Innovation Act to President Biden’s desk.

Passing this legislation will serve as a stimulus for our markets and will be a direct path to creating higher quality, better-paying jobs for the people of the Gem State. Increasing jobs in the semiconductor industry increases jobs across industries in our state. Micron’s work in Idaho has a jobs multiplier of 2.6. This means that, for every 100 Micron employees in Idaho, another 160 jobs are supported across the state. Investing in semiconductors will bring a boost to Idaho’s economy and trade.

The U.S. pioneered the semiconductor industry, and we have the opportunity to once again become a global leader in production and innovation. The Bipartisan Innovation Act, along with the Investment Tax Credit, will foster a nation friendly to ingenuity and boost Idaho’s economy by creating thousands of new jobs to keep pace with the global and domestic demand for semiconductor memory.

Our country must continue to harness American innovation with investments in this crucial industry and while ensuring Idaho remains resilient and prepared for the remainder of the 21st century and beyond.

This story was originally published July 11, 2022 at 4:00 AM.