Alex LaBeau: Idaho needs feds to act fast, pass CHIPS Act
By Alex LaBeau
In the Northwest, Idaho often gets overlooked by the more populated coastal states. But what Idaho has to its advantage is a semiconductor powerhouse and unique position to lead the region and the world in semiconductor R&D and manufacturing. Semiconductor memory is one of Idaho’s top exports and a cornerstone for most of Idaho’s industry. However, the pandemic set Idaho’s manufacturing industry back substantially. The state lost a devastating 2.3% of its manufacturing capacity since February 2020.
The pandemic driven manufacturing decline makes the current gap in domestic semiconductor leadership a critical threat to our national security and American self-reliance. The semiconductor industry was built in the U.S. and to re-emerge on the global stage as a technology leader, the country needs to make sustained investments. If the U.S. government acts now, it will drive an economy that works for Idahoans, providing quality, high-paying jobs, and long-lasting economic stability.
Idaho’s low tax rates, streamlined regulations and diligent workforce has created an economic environment for semiconductor companies to excel, but we need the federal government to fully fund the CHIPS Act and pass the Investment Tax Credit to ensure a globally competitive semiconductor industry. Idaho has done its part and it needs the U.S. federal government to step up and enact policies to effectively compete against foreign countries working to topple the U.S. from its technology leadership position. In short, we must invest in our ability to compete. When the U.S. government fully funds the CHIPS Act and passes the Investment Tax Credit, it will level the playing field between the U.S. and foreign competitors bringing even more trade to Idaho and beyond.
Idaho is home to America’s only domestic manufacturer of semiconductor memory, Micron Technology. Micron directly employs 6,000 Idahoans, and their business activities and manufacturing sales contribute an additional $1.4 billion to our state’s economic engine. Micron was founded in Idaho as a startup in 1978 and today as the fourth largest semiconductor manufacturer in the world, the company continues to invest and expand in our state.
Micron’s partnership with Idaho is strong and enduring, but we need the federal government to make the same long-term investments to give our economy and the technology sector a much-needed boost. Imagine what leading-edge memory chip manufacturing can do to advance Idaho’s countless sectors including agricultural technologies, food production, telecommunications, defense and cybersecurity.
Semiconductors are key to economic growth, national defense, and prosperity in the digital age. Idahoans deserve equal access to economic opportunity and to achieve that, the federal government must advance this strong bipartisan legislation that will protect our country, provide high paying jobs, and ensure long-term economic stability – a perfect trifecta. A revived domestic semiconductor industry will positively impact nearly every industry in Idaho that requires advanced semiconductor manufacturing to function, including modern medical equipment, combines and logging machinery. More so, the lack of domestic semiconductor supply coupled with international semiconductor shortages inevitably lead to inflation, empty shelves, and long wait times for essential equipment.
As technology evolves and more semiconductor-intensive products are developed, the success of our economy will depend on the access we have to these chips. Investment in semiconductor companies is an investment in Idaho and the future of our national defense. Please join me in calling on our lawmakers to put their full support behind the full funding of the CHIPS Act and the Investment Tax Credit. Supporting this legislation is an investment in the Gem State workforce, industries and future.
Alex LaBeau is president of the Idaho Association of Commerce & Industry in Boise.