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Letter to President Joseph Biden - Cotton, Colleagues Ask President Biden to Support Funding for Increased U.S. Semiconductor Production

Letter

Dear President Biden,

We write today to encourage you to prioritize securing funding to implement the initiatives
authorized in the CHIPS for America Act that were enacted into law as part of the fiscal year
2021 National Defense Authorization Act (referred to as the "CHIPS provisions'). We would
specifically request you consider joining us in support of funding levels that are at least the
authorized amounts proposed in the original bill as you work with Congress on a package of
policies to better compete with China and how best to strengthen our country's economic
competitiveness and resiliency as well as national security.

While signing your Executive Order on America's Supply Chains on February 24, 2021, we
were pleased to hear your comments: "bipartisan work has already been done…We need to make
sure these supply chains are secure and reliable. I'm directing senior officials in my
administration to work with industrial leaders to identify solutions to this semiconductor shortfall
and work very hard with the House and Senate." We agree that the United States must build on
the bipartisan Congressional efforts to authorize the CHIPS provisions and now swiftly move to
fund these programs so they can be implemented and begin to address the current supply-chain
vulnerabilities that threaten our national and economic security and ensure our nation's
continued global leadership in this critical technology. We are especially encouraged by the
opportunity to do emergency mandatory funding for implementation of CHIPS as part of a
competitiveness package the Senate is currently compiling, and would welcome your support in
that effort.

The United States cannot wait to provide these resources over the years ahead. The halted
production lines for consumer technology, auto manufacturers, truckers, and other critical
industries due to a semiconductor shortage further highlights the pressing need to act quickly and
fund the enacted bipartisan provisions.

In your Build Back Better initiative, you recognized the value of restoring critical supply chains
to U.S. soil to help revitalize our domestic manufacturing capacity and create good-paying
jobs. Full funding and implementation of CHIPS would reinvigorate our economy by creating
high-paying jobs, developing talent pipelines for American workers, and increasing
technological innovation. The CHIPS provisions authorize funding for manufacturing, R&D and
job-training programs, with a focus on creating pathways for Americans to acquire the skills
necessary for these jobs, including expanding employment opportunities for disadvantaged
workers. Ensuring these provisions are fully funded would support thousands of American jobs
and create a ripple effect throughout the economy, benefiting countless industries, communities
and working families.

In addition to enabling sustainable economic growth today, funding the CHIPS provisions is a
top national security priority. The Chinese Communist Party (CCP) has aggressive plans to
reorient and dominate the semiconductor supply chain, pouring over $150 billion in
semiconductor manufacturing subsidies and investing $1.4 trillion in their efforts to become the
dominate global technological power. Even full funding of the originally filed CHIPS provisions
pales in comparison to the investments being made by the CCP, which speaks to why
consideration of an even higher level of funding is worthwhile.

The United States must also work with our allies and strategic partners to out-scale the CCP in
manufacturing capabilities for advanced semiconductors. If we lose these highly-skilled jobs and
know-how to China, the United States will never recapture them. Further, we risk dependence on
a strategic competitor for the advanced semiconductors that power our economy, military, and
critical infrastructure.

As you develop your FY 2022 budget request, we encourage you to include some initial
investments to support semiconductor R&D and manufacturing at agencies like Commerce,
DOD, DOE, and NSF as intended by CHIPS.

Finally, should you explore executive actions to address this urgent semiconductor matter, we
encourage you to continue pursuing a technology neutral approach.

We are committed to meeting the national imperative of securing our critical supply chains and
look forward to working with you and your Administration to achieve this vital objective.

Sincerely,


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