- July 6, 2020
ARLINGTON, July 6 – Nathan Associates recently completed a study for the Semiconductor Industry Association (SIA), finding that US Government spending (related to programs funded by the Department of Defense, Department of Energy, National Science Foundation, National Institute of Standards and Technology) spurs private sector R&D in the semiconductor industry, and that increasing federal funding for semiconductor-related research from $6 billion to $13 billion in the next five years will add $161 billion to GDP and 500,000 new jobs to the economy by 2029.
These finding are significant because semiconductors are the building blocks of all electronics – from smartphones, to advanced medical devices, to sophisticated weapon systems, to emerging technologies like self-driving automobiles. The United States is the global leader in semiconductor technology, in large measure due to the US Government’s investment in basic research in semiconductor-related areas. There is concern that US leadership in this industry can quickly slip if government funding – which has been relatively flat in the recent past – is not increased substantially. Ensuring continued global leadership in this industry is significant from both an economic and national security perspective. In light of a future in which 5G, Internet of Things (IoT) and the Fourth Industrial Revolution (4IR) will drive the world’s economy, leadership in the global digital economy begins with leadership in semiconductors. Additionally, US national security platforms – from satellites to air defense systems – are fundamentally dependent on semiconductor technology.
Nathan’s research is extremely timely given the attention the US private sector and the federal government have placed on this issue including the American Foundries Act and the Creating Helpful Incentives for Producing Semiconductors (CHIPS) for America Act, recently introduced in Congress. The CHIPS Act aims to support domestic semiconductor production through manufacturing incentives and R&D for the semiconductor industry.
Nathan has worked with the SIA in the past to identify the role of the semiconductor industry in ‘turbo-charging’ the US economy, and to highlight the economic benefits from the globally dispersed semiconductor value-chain. You can access the full SIA report here.
Nathan is a private international economic and analytics consulting firm that works with government and commercial clients around the globe to deliver practical solutions and achieve lasting results. Whether building frameworks for economic growth or navigating regulatory hurdles, securing infrastructure financing or evaluating and assessing disputes, Nathan’s experts serve as trusted partners, offering clients the analysis, technical advice, and strategies they need for sound decision-making.
Known for both technical and service excellence, Nathan has corporate offices in the US, UK, and India and more than 40 program offices around the world. More information about Nathan can be found at nathaninc.com.
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