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SCHUMER ANNOUNCES SENATE PASSAGE OF U.S. INNOVATION AND COMPETITION ACT; $250 BILLION BIPARTISAN BILL WILL BE BLUEPRINT TO MAKE NY GLOBAL TECH & SEMICONDUCTOR HUB; SCHUMER’S BILL INCLUDES $52B FOR U.S. SEMICONDUCTOR INDUSTRY & $10B FOR REGIONAL TECH HUBS TO CREATE JOBS IN UPSTATE NY & PUT NY ON THE FRONTLINES OF THE GREATEST RACE OF THE CENTURY

SCHUMER ANNOUNCES SENATE PASSAGE OF U.S. INNOVATION AND COMPETITION ACT; $250 BILLION BIPARTISAN BILL WILL BE BLUEPRINT TO MAKE NY GLOBAL TECH & SEMICONDUCTOR HUB; SCHUMER’S BILL INCLUDES $52B FOR U.S. SEMICONDUCTOR INDUSTRY & $10B FOR REGIONAL TECH HUBS TO CREATE JOBS IN UPSTATE NY & PUT NY ON THE FRONTLINES OF THE GREATEST RACE OF THE CENTURY

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.

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