Why should you worry about semiconductor manufacturing? Texas congressmen say it’s more than business

AUSTIN (Nexstar / AP) – US Senator John Cornyn admits he wasn’t always aware of semiconductor manufacturing, but once he learned of the threats to the supply chain and national security, he was all right.

The global shortage of semiconductor chips has exacerbated supply chain problems for consumers. Chips are likened to the “brains” behind everyday technology ranging from cars to phones to medical devices. Without them, modern needs are not possible.

Cornyn compared semiconductors to “everything with an on and off switch” in a panel discussion with business leaders and the University of Texas at Austin on Monday. The university proposes a project to promote research and development, with the help of potential congressional funding.

The Texas senator was joined by United States Representative Michael McCaul, R-Texas, who helped lead the House’s legislative effort. The two have teamed up to support the CHIPS for America Act, which has garnered rare bipartisan support and already passed in both chambers.

Senate and House bills allocate more than $ 52 billion for semiconductor manufacturing and research. Federal government grants and loans would subsidize part of the construction or renovation costs of semiconductor plants.

Currently, the United States produces only about 11 to 12 percent of the world’s semiconductors.

During the panel discussion on Monday, both members of Congress expressed deep concern about the national security risks of relying on foreign nations to produce these essential pieces of technology.

“These advanced semiconductor chips are anything from your phone to the most advanced weapon systems we have in the US government,” McCaul said. “We do not want this to be compromised by our adversaries from foreign nations, particularly in the climate we find ourselves in today.”

The United States does not produce any of the most advanced semiconductor chips. Texas A&M Supply Chain Consortium Director Xenophon Koufteros said those are the smallest chips – around 10mm – and power things like computers.

Taiwan produces about 92% of those chips and the rest are made in Japan. Koufteros said this could be disastrous if China escalates tensions and invades Taiwan.

“What if China moves to Taiwan? We should close almost all sectors. We won’t be able to make phones, we won’t be able to make cameras, we won’t be able to make medical devices, “he said.” If that happens … then it will be a total disaster for us here, not just in the United States. but in the whole world “.

He pointed to investments such as the Samsung semiconductor manufacturing plant that will come to Taylor in central Texas. A Samsung executive was at a panel discussion with lawmakers on Monday, who expressed optimism about the $ 17 billion expansion in connection with easing supply chain problems.

“Adding capability, whether it’s manufacturing or R&D we’re talking about today, is really important to us in helping the United States meet its semiconductor interests,” said John Taylor, vice president of corporate engineering at Samsung Austin.

Koufteros said having this type of facility in America is critical, but it will take time to build the infrastructure and other logistics.

“We are going the right way. But we should have done it years ago, we don’t have to wait until we are in a crisis to act, “he said.

What’s next for the CHIPS Act?

Now they have to work out notable differences between the two bills. And Senate Republicans are already digging before negotiations formally begin.

President Joe Biden has made semiconductor legislation a top priority, but he will need the support of 10 Senate Republicans, and possibly more, to bring a bill to his desk. Republican Senate leader Mitch McConnell made this point when congressional leaders recently announced which lawmakers will be on the committee working to reconcile the two bills.

“Without major concessions and changes by the Democrats in the House, this legislation has no chance of becoming law,” McConnell said.

Democrats in the House say their voices need to be heard during the negotiations.

“We need to make sure everyone has input,” said Representative Suzan DelBene, D-Wash., President of the New Democrat Coalition, a group that has 19 members participating in the negotiations. “We have a strong bill in the House and I think there are important components that the Senate should also consider.”

The Senate bill is expected to increase spending by approximately $ 250 billion over 10 years. The House bill would increase spending by more than $ 400 billion over the period.

The Associated Press contributed to this report.

How long has Tower Semiconductor been in business?

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Tower Semiconductor operates seven manufacturing facilities: Fab 1 and Fab 2 (150mm and 200mm) based in Migdal Haemek, Israel, Fab 3 and Fab 9 (200mm) based in Newport Beach, California and San Antonio, Texas and three additional Fabs (two 200mm and one 300mm) via TPSCo located in the Hokuriku region of …

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Tower Semiconductor offers high-quality manufacturing at its seven manufacturing facilities around the world and promotes operational excellence.

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What kind of company is Tower Semiconductor?

Tower Semiconductor, the leading foundry of high-value analog semiconductor solutions, specializes in manufacturing analog ICs for over 300 customers worldwide in growing markets such as automotive, medical, industrial, consumer, aerospace and defense , among others.

Is Tower Semiconductor a good stock to buy?

Tower Semiconductor is an opportunity for a short-term investment with a low-risk 13.4% annual percentage return, based on conservative analysis. Intel is buying Tower Semiconductor for $ 53 in cash per share.

Is Tower Semiconductor a good stock to buy?

Tower Semiconductor is an opportunity for a short-term investment with a low-risk 13.4% annual percentage return, based on conservative analysis. Intel is buying Tower Semiconductor for $ 53 in cash per share.

Is Tower Semiconductor a good investment?

Quality gain: TSEM has high quality gains. Growing Profit Margin: TSEM’s current net profit margins (9.9%) are higher than last year (6.5%).

Is ON Semiconductor stock a buy or sell?

There are currently 1 sell rating, 6 hold ratings, 16 buy ratings and 1 strong buy rating for the stock. The consensus among Wall Street analysts is that investors should “buy” ON Semiconductor stock.

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ON Semiconductor Corp (NASDAQ: ON) receives “Buy” consensus recommendation from analysts. ON Semiconductor Corp (NASDAQ: ON – Get Rating) was given an average “Buy” recommendation from the twenty-eight rating companies that cover the company, Marketbeat.com reports.

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Why are chips selling off?

The global semiconductor shortage, triggered by pandemic-influenced spikes in demand, has reportedly led to a near-depletion of 2022 chip supply before the start of the year yet, but investors and analysts fear that the end of the party is already in sight.

Why is there a shortage of chips? How the shortage began. Computer chips started running low at the start of the pandemic as buyers of chips, particularly carmakers, slashed their orders fearing a global recession. In response, semiconductor plants have reduced their production. An increase in demand.

Why is there still a chip shortage 2022?

This shortage of inventory has left most companies requesting these chips with no “room for error” as factors such as COVID, bad weather / storms, political instability or even something as simple as a problem with the equipment could stop the chip making and cause a chain reaction of arrests in America, leaving …

Will chip shortages end in 2022?

When will it finally end? Unless there is a sudden drop in demand, the chip shortage won’t end anytime soon, analysts said. Most industry executives warn that the shortage will likely not recede until the second half of 2022, with some products continuing to experience delays due to a chip shortage in 2023.

Will chip shortage affect 2022 cars?

The chip shortage is expected to decrease throughout 2022, but it may not be necessary until the second half of 2023 before it’s ready for the history books.

What caused the chip shortage 2022?

There are a few reasons why this shortage of microchips is particularly affecting car manufacturers. Modern vehicles use more chips than ever. With each new model, cars and trucks are equipped with larger infotainment systems and a host of other high-tech car safety features.

What kind of company is Tower Semiconductor?

Tower Semiconductor, the leading foundry of high-value analog semiconductor solutions, specializes in manufacturing analog ICs for over 300 customers worldwide in growing markets such as automotive, medical, industrial, consumer, aerospace and defense , among others.

Where are Tower semiconductors manufactured? Tower Semiconductor operates seven manufacturing facilities: Fab 1 and Fab 2 (150mm and 200mm) based in Migdal Haemek, Israel, Fab 3 and Fab 9 (200mm) based in Newport Beach, California and San Antonio, Texas and three additional Fabs (two 200mm and one 300mm) via TPSCo located in the Hokuriku region of …

Is Tower Semiconductor a good stock to buy?

Tower Semiconductor is an opportunity for a short-term investment with a low-risk 13.4% annual percentage return, based on conservative analysis. Intel is buying Tower Semiconductor for $ 53 in cash per share.

Is tsem a buy?

Out of 2 analysts, 1 (50%) recommend TSEM as a strong buy, 0 (0%) recommend TSEM as a buy, 1 (50%) recommend TSEM as a hold, 0 (0%) recommend TSEM as a sell, and 0 (0%) they recommend TSEM as a strong sell. What is TSEM’s earnings growth forecast for 2022-2023?

Is ON Semiconductor stock a buy or sell?

There are currently 1 sell rating, 6 hold ratings, 16 buy ratings and 1 strong buy rating for the stock. The consensus among Wall Street analysts is that investors should “buy” ON Semiconductor stock.

Is Tower Semiconductor a good investment?

Quality gain: TSEM has high quality gains. Growing Profit Margin: TSEM’s current net profit margins (9.9%) are higher than last year (6.5%).