Source: United States Senator for New York Charles E Schumer
06.09.21
Schumer’s Bill, The U.S. Innovation And Competition Act, Would Make Largest R&D Investment In Generations & Secure Critical Federal Funding For Domestic Manufacturing Of Semiconductors And Other Critical Technology
Senator Says Bill Includes Massive Investment To Boost U.S. Competitiveness And Supercharge Upstate CHIP Production And R&D, Making It Essential To Growing NY Companies & Easing U.S. Reliance On Foreign-Made Semiconductors, Alleviating National Security Risks
Schumer: U.S. Innovation And Competition Act Is The Blueprint To Make NY The Global Innovation & Semiconductor Hub
After a year of staunch advocacy to secure the domestic semiconductor and microelectronic supply line and make historic investments in federal R&D and innovation, U.S. Senate Majority Leader Charles E. Schumer announced senate passage of the U.S. Competition and Innovation Act, which combines Schumer’s Endless Frontier Act, other bipartisan competitiveness bills, and includes $52 billion in emergency supplemental appropriations to implement the semiconductor-related manufacturing and R&D programs Schumer authorized in last year’s National Defense Authorization Act and a program to support legacy chip production that is essential to the auto industry, the military, and other critical industries. An additional $1.5 billion was included for implementation of implement the USA Telecommunications Act that was also passed as part of last year’s NDAA to foster U.S. innovation in the race for 5G.
Senator Schumer said, “Senate passage of the bipartisan U.S. Innovation and Competition Act moves forward historic legislation to invest in science, technology, and U.S. manufacturing that will shore up critical industries like semiconductors, artificial intelligence, advanced communications like 5G, quantum computing, biotechnology, and advanced energy, and create opportunity to reshape the Upstate New York economy with investment in new regional tech hubs and support for New York entrepreneurs and research at universities and laboratories.”
“With its rare combination of a world-class workforce, advanced manufacturers, and renowned higher education institutions, I wrote and championed this legislation with Upstate New York always at the forefront of my mind,” Schumer added. “In the midst of one of the most consequential battles in our nation’s history, the U.S. Innovation and Competition Act lays the foundation for the next century of American economic leadership and preserves our competitive edge for generations to come, and I’ll continue to fight to put Upstate New York on the frontlines of that battle.”
Details on the supplemental appropriations appear below:
- $49.5 billion allocated over 5 years for a CHIPS for America Fund. Funding must be used to implement the Commerce Department semiconductor incentive and R&D programs authorized by the FY21 NDAA (Sec. 9902 & 9906). Within the fund, the following appropriations are available:
- Incentive Program: $39 billion appropriated upfront and allocated over 5 years to implement the programs authorized in Sec. 9902. $2 billion is provided to solely focus on legacy chip production to advance the economic and national security interests of the United States.
- $19 billion in FY22, including the $2 billion legacy chip production funding
- $5 billion each year, FY23 through FY26
- Commerce R&D programs: $10.5 billion appropriated upfront and allocated over 5 years to implement programs authorized in Sec. 9906, including the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program, and other R&D programs authorized in Sec. 9906.
- $5 billion in FY22
- $2.5 billion for advanced packaging
- $2 billion for NSTC
- $500 million for other related R&D programs
For use across the advanced packaging, NSTC, and other related R&D programs, the following would be provided:
- $2 billion in FY23
- $1.3 billion in FY24
- $1.1 for FY25 and FY26
- $2 billion for a CHIPS for America Defense Fund: Funding is appropriated up front and $400 million is allocated each year, over 5 years for the purposes of implementing programs authorized in Sec. 9903(b), providing support for R&D, testing and evaluation, workforce development, and other related activities, in coordination with the private sector, universities, and other Federal agencies to support the needs of the Department of Defense and the intelligence community.
- $500 million for a CHIPS for America International Technology Security and Innovation Fund: Funding is appropriated upfront and $100 million each year, allocated over 5 years to the Department of State, in coordination with the U.S. Agency for International Development, the Export-Import Bank, and the U.S. International Development Finance Corporation, for the purposes of coordinating with foreign government partners to support international information and communications technology security and semiconductor supply chain activities, including supporting the development and adoption of secure and trusted telecommunications technologies, semiconductors, and other emerging technologies.
An additional $1.5 billion is provided for implementation of implement the USA Telecommunications Act that was also passed as part of last year’s NDAA to foster U.S. innovation in the race for 5G.
Details on the Endless Frontier Act:
The Endless Frontier Act, as reported by the Senate Commerce Committee, seeks to maintain and build on U.S. science and technology leadership through investments in research and 5 development and strengthening regional economic development, manufacturing, and supply chains. The legislation would authorize roughly $120 billion over 5 years for activities at the National Science Foundation (“NSF”), Department of Commerce (“DOC”), the Department of Energy (“DOE”), and the National Aeronautics and Space Administration (“NASA”). The Endless Frontier Act advances priorities including to reduce undue geographic concentration of R&D funding, encourage broader participation of populations underrepresented in STEM, and increase collaboration across federal agencies and with non-governmental partners on innovation.
Notable Provisions:
- Technology Directorate: The Endless Frontier Act would create a new Directorate of Technology and Innovation at the NSF to support research and technology development in key technology focus areas, such as artificial intelligence and quantum science, in order to strengthen the global leadership of the United States in innovation. Major activities would include funding research and development at collaborative institutes, supporting academic technology transfer and intellectual property protection, establishing technology testbeds, and awarding scholarships and fellowships to build the relevant workforce. The Directorate would be authorized at $29 billion over fiscal years 2022 to 2026, including a transfer of $2.9B to existing NSF divisions to support basic research collaboration.
- NSF Research and Development Programs: The Endless Frontier Act would authorize $52 billion over fiscal years 2022 to 2026 for existing NSF activities, representing a seven percent increase each year. The legislation would also create a Chief Diversity Officer at NSF and increase STEM education to enhance the domestic STEM workforce. The legislation also incorporates a series of new programs, including programs for precision agriculture, rural STEM education, quantum information science, skilled technical education, critical minerals, and bioeconomy R&D.
- Regional Technology Hubs: The Endless Frontier Act creates a regional technology hub program at DOC to support regional economic development in innovation. Technology hubs would carry out workforce development activities, business and entrepreneur development activities, technology maturation activities, and infrastructure activities related to the technology development. The technology hubs program would be authorized at $10 billion over fiscal years 2022 to 2026.
- Manufacturing: The Endless Frontier Act would authorize close to a quadrupling of the DOC Manufacturing Extension Partnership and create a new track within the program for public benefit activities like workforce development and cybersecurity services. The Manufacturing Extension Partnership would be funded at $2.4B over fiscal years 2022 to 2026. The substitute would also authorize the Manufacturing USA program, at $1.2B over fiscal years 2022 to 2026, and add workforce and coordination provisions.
- Supply Chain Resiliency: The Endless Frontier Act would establish a supply chain resiliency program at the Department of Commerce to work with the private sector, for the purpose of identifying and recommending opportunities to mitigate or address supply chain vulnerabilities in the United States and in allied and partner countries. It would also amend the recently-enacted CHIPS Act to provide $2 billion in incentives for domestic production of mature semiconductor technologies, such as for the automotive industry.
Schumer’s U.S. Innovation and Competition Act is supported throughout the state. Supporters include:
Southern Tier
“Binghamton University, with its reputation as a research institution with strong industry partnerships, is well-positioned to fulfill Senator Schumer’s plan of making New York state a global innovation and semiconductor hub,” said Binghamton University President Harvey Stenger. “Senator Schumer understands that path-breaking research and commercialization efforts must be well-funded in order for the United States to remain globally competitive. We thank the Senator for his laser focus on this issue and for advocating for New York. Binghamton stands ready to work with our industry and academic partners on technology advances and solutions that secure the US and NY’s leadership in this critical industry.”
Capital Region
“Yesterday’s vote was historic,” said Tom Caulfield, CEO of GlobalFoundries. “I applaud the U.S. Senate for its bipartisan commitment to strengthening the domestic semiconductor supply chain, and especially Senate Majority Leader Schumer who tirelessly pushed for this. The USICA not only boosts semiconductor manufacturing – but literally impacts every single one of our lives. I urge the House to move just as decisively.”
“The U.S. Innovation and Competition Act is a visionary piece of legislation that recognizes the potential for scientific discovery to solve society’s biggest challenges and encourages the type of public-private collaboration that took humanity to the moon. I applaud Majority Leader Schumer’s leadership, and that of Senators Cornyn and Young, in this bipartisan push to harness emerging technology for societal progress and to expand economic opportunity. I hope the House will now act quickly so that this important legislation can be signed into law,” said IBM Chairman and CEO Arvind Krishna.
Western New York
“As a bank for communities, we understand that economic development and prosperity requires building an “ecosystem” that attracts, retains, develops and engages modern talent, creating sustainable and equitable engines for economic growth,” said Rene F. Jones, Chairman and CEO of M&T Bank. “This is especially true in small and mid-tier cities, where we serve and across the country. In cities like Buffalo and Rochester, we are building a new technology hub and hosting a growing number of innovative entrepreneurial businesses that support long-term competitiveness. The United States Innovation and Competition Act, sponsored by Senators Schumer and Young has bipartisan support and backing from the business community because it helps the United States regain our position as the world’s leader in technology and innovation, while building out economic opportunities that are inclusively distributed across the country.”
“EWI enthusiastically supports Senator Schumer’s US Innovation and Competition Act because we believe that manufacturing competitiveness and technological innovation are inextricably linked” said Henry Cialone, President and CEO of EWI/Buffalo Manufacturing Works. “This bipartisan legislation provides a comprehensive approach to create new manufacturing innovations, mature them, and most importantly support their deployment within US industry. The creation of multiple regional hubs across the country will provide productive internal competition that in turn advances the nation’s overall competitive strengths.”
“The U.S. Innovation and Competition Act will strengthen our regional and national economies by making a serious investment in the industries that will shape the 21st century,” said Dottie Gallagher, President and CEO of the Buffalo-Niagara Partnership. “The Act will make the United States stronger on the global stage while creating jobs and opportunities right here in Western New York. The Buffalo Niagara Partnership thanks Senator Schumer for his strong leadership on this issue and hopes the USICA will enjoy similar bipartisan support in the House.”
Rochester-Finger Lakes
“Thank you Senator Schumer for your leadership on the U.S. Innovation and Competition Act and for securing Senate passage. It is very encouraging to see bi-partisan support for legislation that will make significant investments in research and higher education and serve as a blueprint to invest in our nation’s great colleges and universities to support global competitiveness,” said Rochester Institute of Technology President David C. Munson, Jr. “As a STEM focused research institution and an economic engine for the region that educates students who can step into these high-tech R&D jobs to help enhance the nation’s technical superiority and security, we are proud to partner with you on this effort.”
“Federal investment in scientific research has not kept pace with our global competitors and threatens U.S. leadership, while leaving too many good ideas unfunded. Senator Schumer’s U.S. Innovation and Competition Act creates an innovation surge to drive economic recovery, build resiliency, support the next generation of scientists, and increase U.S. global competitiveness. By making bold, critical new research investments in key emerging fields and developing new growth centers across the country, we can capitalize on the tremendous capabilities of research universities and academic medical centers, like the University of Rochester, to catalyze new technologies, companies, and cures to help build an ever better future,” said University of Rochester President Sarah C. Mangelsdorf.
Greater Rochester Chamber of Commerce President and CEO Bob Duffy said, “As outlined in an analysis by MIT Professor Jonathan Gruber, the Greater Rochester region is ranked number one in the nation as ripe for technological and economic investment and growth. With 19 nationally and internationally renowned higher education institutions to provide much-needed talent, world-class facilities like STAMP and Eastman Business Park which are primed to host new semiconductor jobs and factories, and a long history of cutting-edge technological research and development, Rochester is perfectly suited for additional investment. Greater Rochester Chamber and our 1,300 members commend Senator Schumer on securing Senate passage of this bill and stand ready to help take this legislation over the finish line.”
Steve Hyde, President & CEO, Genesee County Economic Development Center said, “Senate Majority Leader Schumer has long-championed upstate New York as the ideal region for critical growth of the domestic semiconductor manufacturing and R&D investments due to our university research and talent, our established and ever-growing semiconductor supply chain, along with our considerable capacity of renewable, reliable, and competitively priced electricity. We applaud Senator Schumer for his leadership in winning Senate passage of this bill, and agree that the U.S. Innovation and Competition Act would be catalytic in growing the high-tech economy at the Western New York Science & Technology Advanced Manufacturing Park (STAMP) and all across upstate New York.”
“Akoustis, Inc. would like to thank Senate Majority Leader Chuck Schumer for his visionary leadership, his support of the U.S. semiconductor industry, and his unwavering push to strengthen American leadership in chip manufacturing,” stated Akoustis, Inc. Founder and CEO, Jeff Shealy. Mr. Shealy continued, “With many countries investing in their own semiconductor industries, it is imperative that the U.S. creates an environment that supports on-shore chip manufacturing. We applaud Senator Schumer for now securing Senate passage of the bipartisan U.S. Innovation and Competition Act which will provide the funding needed to help keep American semiconductor chip manufacturing competitive.”
MIT Economist Dr. Jonathan Gruber and Co-author of the book Jump-Starting America: How Breakthrough Science Can Revive Economic Growth and the American Dream said, “We analyzed 102 American communities to determine which had the greatest potential to become a national driver of economic growth and next-general tech development under a new program to significantly boost scientific research and development investments. Out of these 102 communities, Rochester, NY ranked as the No. 1 community poised to become an economic powerhouse through the type of bold investment into scientific investment that is provided by the U.S. Innovation and Competition Act Endless Frontier Act. Rochester, with its large pool of educated workers, high-quality universities, and low cost of living is uniquely suited to become a center of innovation and job growth through investment into the sciences.”
Matt Hurlbutt, President & CEO of Greater Rochester Enterprise said, “We appreciate Senator Schumer’s leadership and support in securing Senate passage of the US Innovation and Competitiveness Act of 2021. This important, bi-partisan effort will help the United States lead the world in the research and development of new technologies. Smart people and smart businesses located throughout Greater Rochester will leverage these investments to support breakthrough advancements in semiconductor, manufacturing supply chains, telecommunications and other emerging technologies. Increased investment in research and development and talent development initiatives will further enhance future success in these key industry sectors. Greater Rochester Enterprise looks forward to working with Senator Schumer, industry executives and economic development partners to leverage the US Innovation and Competitiveness Act of 2021 to support business growth throughout the Greater Rochester.”
“On behalf of the 100+ private, not-for-profit colleges and universities in New York and their faculty, students, and researchers, I applaud the Senate’s passage of the U.S. Innovation and Competition Act,” said Lola W. Brabham, President of the Commission on Independent Colleges and Universities. “This critical investment in research will build upon the strong R&D foundation in places like upstate New York and will ensure that the United States, and New York, remain at the forefront of technology and innovation. New York’s colleges and universities are national leaders in higher education research and we are grateful for Senator Schumer’s stalwart commitment to investing in the science and technology that will help move the nation forward and preserve the U.S. position as a global leader.”
Central New York
Onondaga County Executive Ryan McMahon said, “Passing this bill will be a significantly important step towards securing a semiconductor manufacturing facility in Onondaga County. Our site is known across the globe for its easy access to affordable water and power along with our great quality of life.” McMahon continued, “Thank you to Senator Schumer for his steadfast leadership and advocacy for this bill and our community.”
“This is a pivotal moment for our nation’s innovation and science infrastructure,” said Syracuse University Chancellor Kent Syverud. “The Endless Frontiers Act will enable Syracuse University and other major research universities to help jumpstart the United States’ competitiveness. It will also allow our nation’s great research universities accelerate discovery, advance new technologies and develop life-saving materials, treatments and medicines. I thank Senator Schumer for his leadership in this area and look forward to building a stronger, more competitive innovation ecosystem here in Central New York and across the nation.”
“The Endless Frontiers Act puts into law something we have known in Central New York for decades, places like Syracuse have much to offer our country and the world in terms of innovation, research and development. These needed investments in American competitiveness will ensure that federal research funding flows beyond the usual mega-regions and gets to the heart and soul of America’s innovation ecosystem – where academic excellence meets manufacturing prowess. The federal CHIPS Act will jump-start domestic production of semiconductors and advanced electronics, creating jobs and ensuring U.S. security and competitiveness,” said Robert Simpson President of Centerstate CEO.
Mohawk Valley
“The proposed U.S. Innovation and Competition Act of 2021 represents the single largest investment by the United Sates in American innovation and manufacturing since Sputnik 1 ushered in a new era of political, scientific and technological achievements that propelled the United States commitment to the Space Age,” said Steven DiMeo, President of Mohawk Valley EDGE. “This bipartisan piece of legislation fosters public – private partnerships that will improve the United States competitiveness in semiconductor technology, increase manufacturing jobs with expansion of new Fabs to reverse the off-shorting of jobs and technology, and strengthen critical supply chains that are vital to this nation’s economy and national security interests. We applaud Senator Schumer’s leadership and commitment to secure Senate approval of this landmark legislation.”
“From our automobiles to our smart phones to the appliances in our kitchens, semiconductors are critical, not just to our national security, but to our everyday life,” said Oneida County Executive Anthony J. Picente Jr. “Senator Schumer’s leadership in ensuring that we continue to build domestic research and production capacity, encouraging more companies like CREE-Wolfspeed to invest, is great news for America and Oneida County.”
“The bipartisan passing of the U.S. Innovation and Competition Act of 2021 is a major step in addressing our ongoing struggle to compete with China’s growing economic influence, which could also have major benefits for the Mohawk Valley,” said Heather Hage, president and CEO of Griffiss Institute. “This bill helps address a critical need for more investment in accelerated R&D and workforce development in emerging technologies essential to the United States’ competitiveness – like artificial intelligence, cyber, quantum and UAS – where the Mohawk Valley has been leading the way. The partnership forged between the Griffiss Institute, Rome Lab, Oneida County, NYSTEC and SUNY to launch Innovare Advancement Center as an open innovation hub focused on national challenges in these critical technology areas should position the region well to attract new opportunities in this next chapter. Together, we are committed to working tirelessly with our partners in the Mohawk Valley and across the I-90 corridor to ensure that Upstate NY continues to lead the way into the future of innovation.”
NNY
“Research, innovation and technology-based workforce training are essential to America’s global leadership and good for the American workforce. We applaud Senator Schumer and his bipartisan colleagues for coming together to pass the U.S. Innovation & Competition Act at a critical time when we need sustainable economic development solutions and investments with substance for global competitiveness into the future,” said Tony Collins, President of Clarkson University. “Universities with strong STEM focus like Clarkson are ready to partner with American industry and government agencies”
Hudson Valley
“HVEDC applauds Senator Schumer’s leadership in securing the Senate passage of the bipartisan U.S. Competition and Innovation Act, which makes bold investments in the Hudson Valley’s burgeoning semiconductor manufacturing sector while also providing new opportunities for the research and development of new technologies. Through our Hudson Valley-based global industry leaders like IBM and ONSemi and our local universities, Senator Schumer’s legislation will bolster technological innovation and create jobs for our region,” said Hudson Valley Economic Development Corporation President and CEO Mike Oates.
“ON Semiconductor applauds the Senate passage of robust funding for the CHIPs for America Act as part of the United States Innovation and Competition Act,” said Hassane El-Khoury, President and CEO of ON Semiconductor. “This Act will help America compete with its trading partners who have been aggressively supporting semiconductor research and manufacturing in their countries and we are hopeful that the House quickly follows the Senate’s lead.”
“I thank Senator Schumer for championing the Senate passage of the U.S. Competition and Innovation Act, which will provide increased opportunities for investment in Ulster County’s growing science and technology sectors through workforce development, research, and entrepreneurship. Ulster County has a longstanding history of entrepreneurship and technological innovation through institutions such as the Hudson Valley Additive Manufacturing Center and the Hudson Valley Venture Hub, and Senator Schumer’s legislation will allow us to build on this success by attracting global business leaders to the area,” said Ulster County Executive Pat Ryan.
“The Council of Industry thanks Senator Schumer for his tireless leadership in securing passage of the bipartisan U.S. Competition and Innovation Act. Manufacturing is vital to not only our national security but to our regional economy as well. The Hudson Valley is home to many firms in the semiconductor, bio-tech, electronics, pharmaceutical, artificial intelligence and emerging quantum computing industries and this legislation will provide much needed investment and support to those businesses helping them to innovate and grow,” said Harold King, President Council of Industry of Southeastern New York.
“Senator Schumer’s U.S. Innovation and Competition Act will increase regional investment in scientific research and technology innovation by providing new opportunities for public colleges and universities. The Hudson Valley Additive Manufacturing Center at SUNY New Paltz, home of the College’s 3D design and printing initiative, and the College’s Hudson Valley Venture Hub stand ready to leverage this new kind of investment. Both are longstanding regional technology and entrepreneurial hubs that have provided guidance and support to hundreds of businesses and entrepreneurs across the Hudson Valley and throughout the state,” said SUNY New Paltz President Donald Christian.
“Dutchess County has long been recognized for attracting innovative minds and institutions,” said Dutchess County Executive Marc Molinaro. “Already a regional hub for innovation with our distinguished institutions of Marist College, Dutchess Community College, and Vassar College with-world class technology leader IBM as well as ONSemiconductor, Dutchess County is a leader in attracting world-class establishments for research and development. We thank Senator Schumer for championing the bipartisan U.S. Competition and Innovation Act, which will be a vital investment in our already growing science and technology field. We appreciate Senator Schumer’s continued support and forward thinking.”
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