Protecting U.S. Workers 

The U.S. is the world leader in semiconductor manufacturing.  The industry directly employs more than 277,000 workers and indirectly supports another 1.5 million jobs.  These workers produce the chips that serve as the brains in everything from cell phones to medical equipment to fighter jets. 

 Experts believe China sees U.S. leadership in chip manufacturing as an economic and political threat.  They fear China is “subsidizing and stealing” its way to global dominance in chip production.  Many predict it will not be long before China is able to unfairly flood the market with cheap, state-subsidized chips that distort prices and push out competitors.  If this happens, U.S. companies will be unable to compete.  Some manufacturers may close their doors, costing U.S. workers their jobs. 

In 2022, Congress passed and President Biden signed the CHIPS and Science Act.  This legislation made new investments in the U.S. semi-conductor industry to support U.S. workers and economic growth.  Importantly, the legislation includes provisions that stakeholders believe will lift up low income communities, Black and Brown communities and others traditionally locked out of upward economic mobility.

The investments in the CHIP Act are important accomplishment, but they are potentially undermined by U.S. trade policy that allows China to play unfair.  A bipartisan group of senators, including Chuck Schumer (NY) and Mark Warner (VA), have called Chinese semiconductor manufacturers a “growing threat” to U.S. workers and national security.  They have warned that U.S. trade policy may be allowing China to “exploit [ technological sector and supply sanctioned parties in China [such as Huawei].”  To protect U.S. workers and national security, the Senators have asked the Department of Commerce to place certain state-backed Chinese chip manufacturers on the Department’s trade restriction list, otherwise known as the Entity List. 

Tell your member of Congress to join Senators Schumer and Warner in protecting U.S. workers and the U.S. semiconductor industry.