“Secure the Future” is the SEMI U.S. public policy campaign that promotes legislation to encourage innovation and advanced manufacturing in the United States. To ensure America’s continuing leadership role in semiconductor manufacturing, SEMI believes that the U.S. must nurture a business climate that supports technical innovation. According to SEMI, innovation in America is at risk because many current U.S. policies fail to encourage technical innovation.

The U.S. share in global chip production capacity is slipping, particularly in leading-edge manufacturing technology. According to Vicki Hadfield, president of SEMI North America, “While the U.S. is home to some of the largest and most successful semiconductor companies in the world, America’s share of the worldwide IC market is declining—with a corresponding loss of jobs, careers and high-tech business opportunities.” The same challenges and forces that affect U.S. chipmakers are also impacting U.S.-based semiconductor equipment and materials suppliers.

The “Secure the Future” campaign focuses on three areas of the SEMI 2007–08 U.S. Public Policy agenda:

• R&D tax credit: Making the R&D tax credit permanent to promote investments in U.S.-based research and development;
• Workforce development: Adopting smart immigration policies that allow us to draw on the global labor pool for the highly specialized and qualified people that our industry needs; and
• Funding for R&D: Providing appropriate funding for basic research in areas that contribute to advanced chip manufacturing.

“Public policy is an important key to maintaining American competitiveness as the global economy evolves and other nations compete for high-technology investments,” states Hadfield. SEMI hopes that as people become more educated about these issues, they will join SEMI in campaigning for public policies that increase American competitiveness. SEMI asks both individuals and companies to write letters, support petitions, and join advocacy committees.

At the SEMI Washington Forum, held on May 1–2, 2007 in Washington, D.C., over 20 industry executives pressed for the “Secure the Future” legislative priorities. As part of the Washington Forum, approximately 30 meetings with key policymakers were held to explain the industry’s concerns and highlight steps needed to address these problems.

In the last two years, the issue of American competitiveness has been at the forefront in Washington. During the 2006 State of the Union address, the President launched the American Competitiveness Initiative. In concert, the House Democrats released their Innovation Agenda. While groups like SEMI and SIA have called attention to these issues for years, the government’s recent initiatives partially stem from a National Academy of Sciences report called “Rising above the Gathering Storm.” Both Republicans and Democrats agree that innovation is the source of American growth and prosperity. Semiconductors were invented in the U.S. and are closely linked to our competitive advantage—playing the critical role in computers, consumer electronics, telecommunications, software and many other industries.

In June 2007, nine chief executives of large technology companies (Applied Materials, Dell, EMC, HP, IBM, Intel, Motorola, NCR, and Unisys) released a report titled: “A Great Nation: How Americans Can Lead and Prosper in a Changing World.” Quoted in the Wall Street Journal (6/13/07), the report states that a great nation “…does not fear overseas competition. A great nation prepares its workers and companies to successfully compete in a global market.” Paul Otellini of Intel believes that today’s political discussions are “myopic” in nature, and says “I don’t think we have internalized the extent of the global competitiveness issue. It’s almost like we take our position in the world for granted.” Michael Splinter of Applied Materials states, “There’s…..a disappointing lack of leadership explaining the need to keep us globally engaged.”

Recently, some legislative successes have occurred in the U.S., although the results are mixed and the needs overwhelming. Congress approved record increases for National Science Foundation (NSA) and National Institute of Standards and Technology (NIST) for FY07 while many agencies received flat funding. The R&D tax credit was extended at the end of 2006 and a new Alternative Simplified Credit was created, but the credit had lapsed for a year and the extension is short term. Some progress occurred last year in formulating and building support for legislation to address high-skills immigration reform. However, the current comprehensive immigration bill looks uncertain at the time of this writing and H-1B visa shortages continue. Clearly, much more needs to done.

Potential exists for enacting final legislation this year that addresses these issues. R&D funding looks positive in terms of continued strong funding for NSF and NIST. High-skills immigration reform is under consideration and enjoys a fairly broad range of support. The R&D tax credit permanency continues to be an issue that most Members of Congress support.

The 2008 Presidential campaign is already underway and will only become more intense as Election Day approaches. This, coupled with the 2008 Congressional campaigns, makes it even more pressing to achieve policy results this year before the political campaigns get into high gear.

SEMI represents member companies from all regions of the world, and advances the industry’s public policy agenda in all countries in which their members operate. While less than half of the total SEMI members are U.S. companies, a strong U.S. environment for high-technology and semiconductor manufacturing is good for all SEMI member companies who are active in the U.S. market.