U.S. semiconductor companies invest 17% of their revenue in Research and Development (R&D).
This data was presented by the Semiconductor Industry Association (SIA) to the U.S. International Trade Commission (USITC). It was included as part of the SIA’s comments on the “Proposed Determination and Application of Section 337.”
U.S. Semiconductor Companies
The United States is on track to invest more than $2.7 trillion in data center infrastructure by 2030. Within that spending, semiconductors will account for about 54 cents of every dollar invested. This is according to an analysis published by the Center for Strategic and International Studies (CSIS).
The U.S. Congress passed legislation to strengthen the U.S. semiconductor industry. The Semiconductor Manufacturing and Science Incentives Act of 2022 allocated $39,000 million to a support program. This program aims to build or expand chip manufacturing plants and facilities for the production of semiconductor materials.
By January 2025, the Department of Commerce had provided $30.7 billion in grants and $5.5 billion in loans to 19 semiconductor companies. The funds were allocated to 40 commercial semiconductor manufacturing projects.
Chip Production
The SIA is the voice of the semiconductor industry. It is one of the United States’ leading export industries. It is also a key driver of the country’s economic strength, national security, and global competitiveness.
According to its own data, the SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip companies.
To maintain their competitiveness and technological leadership, U.S. semiconductor companies invest, on average, 17% of their revenue in R&D—one of the highest rates of any industrial sector, according to the SIA.
Strategic Investments
The Association emphasized that this significant level of investment generates valuable intellectual property. This includes patents that may be subject to Section 337 proceedings.
Consequently, SIA member companies are interested in ensuring that these proceedings are conducted fairly. They also seek to ensure that they are carried out efficiently and transparently.
To achieve these objectives, the SIA supports the ITC’s proposal to amend its Rules of Practice and Procedure regarding Section 337 determinations and enforcement measures. The aim is to require the disclosure of entities that have a financial interest or stake in the investigations.
From their perspective, the proposal would help improve the transparency of the Article 337 process. In addition, they offer further suggestions for properly defining the scope of the regulations.
Intellectual Property Rights
Through this coalition, SIA seeks to strengthen leadership in semiconductor manufacturing, design, and research by collaborating with the U.S. Congress, the government, and key global industry stakeholders to promote policies that drive innovation, stimulate business, and foster international competition.
SIA is interested in the proposed regulation due to the importance of intellectual property as a key driver of innovation in the semiconductor industry and the need for efficient procedural rules governing disputes between parties regarding intellectual property rights, including Section 337 proceedings before the USITC.