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A coalition of California’s leading business associations, the Silicon Valley Leadership Group (SVLG) has urged U.S President, Joe Biden’s Administration and Congress to accelerate the implementation of the multibillion dollar CHIPS Act incentive program. They say this is critical to sustaining and strengthening the state’s thriving innovation economy.

According to the White House, America had more than 30 percent of global chip production over 30 years ago, but today, it produces barely 10 percent of the world’s chips. The CHIPS Act seeks to change this by investing $280 billion over the next ten years to revitalize U.S. competitiveness, innovation, and national security.

Over the next five years, the Department of Commerce will oversee $50 billion in investments including $11 billion for advanced semiconductor R&D and $39 billion to speed up domestic chip production. Additionally, the Act creates a private sector investment tax credit for semiconductor manufacturing of approximately $24 billion.

“The CHIPS Act promises to bolster Silicon Valley competitiveness by supercharging critical innovation infrastructure,” said Silicon Valley Leadership Group CEO Ahmad Thomas. “Our member companies stand ready to quickly leverage the federal government’s multi-billion dollar investment to help strengthen U.S. technology, ensure our global competitiveness, and fortify our supply chain resilience.”

In a package of letters to U.S. Secretary of Commerce Gina Raimondo and members of the California delegation, the coalition emphasized that: “The [CHIPS and Science] Act presents a unique moment to seize upon California’s innovation and manufacturing advantages that will help strengthen the national economy and reinforce our critical supply chain of needed semiconductor chips and components. We respectfully request that the Department of Commerce move expeditiously to implement the Act’s incentive program, and we are happy to serve as an industry resource as the Act is implemented.”

In addition to the SVLG, the letters were signed by the Bay Area Council, Chamber San Mateo County, Fremont Chamber of Commerce, Los Angeles County Business Federation, San Diego Regional Chamber of Commerce, San Mateo County Economic Development Association, Sunnyvale Chamber of Commerce, and Valley Industry & Commerce Association.

American businesses rely on semiconductors as essential components in electronic products like desktop computers, laptops, tablets, and smartphones. Advancing the nation’s military capabilities also requires semiconductors for cutting-edge technologies. Expanding domestic manufacturing of semiconductors will bolster national security, supply chain resilience, and strengthen the national economy.

California’s Innovation Economy, made up of diverse actors including technology companies, premier research entities, and comprehensive supply chain leaders, is well-positioned to leverage the Act’s incentives and act as a force multiplier for federal investment to strengthen national manufacturing, R&D, and semiconductor workforce training.