Chips Act heading for President Biden's Signature

The U.S. Congress has passed the CHIPS Act.  Senator Schumer’s office released the following press release:

After years of relentless advocacy, U.S. Senate Majority Leader Charles E. Schumer today announced the Senate has passed his historic federal semiconductor incentive, scientific research, and technological competitiveness bill to bring manufacturing back from overseas to places like Upstate New York. The senator explained this will help build more resilient domestic supply chains to help lower costs for families, address inflation, and strengthen national security by manufacturing more microchips in America. Schumer said that the historic federal semiconductor manufacturing incentivizes will be the lightning rod for existing chip and tech companies to grow in New York, helping attract new major employers, creating thousands of new good paying jobs, and ensuring the foundation for the future is built in Upstate New York.

“This bill means lowering costs for families, strengthening our national security, and bringing manufacturing back to Upstate New York. With its rare combination of a world-class workforce, advanced manufacturers, and renowned higher education institutions, I wrote and championed this legislation with Upstate New York always at the forefront of my mind and now it is primed to reap the rewards. I want to see the future made in Upstate New York,” said Senator Schumer. “When you combine the chip manufacturing potential at sites like White Pine Commerce Park in Central New York, Marcy Nanocenter in the Mohawk Valley, and STAMP in Genesee County, with Globalfoundries and Wolfspeed’s existing plants and onsemi soon acquiring a facility in East Fishkill, NY, all coupled with world-renowned research capabilities at the Albany Nanocenter and across the SUNY system and the state’s universities and labs, Upstate New York could be the nation’s leader in microchips and other tech industries that will dominate this century. Simply put – this is the 21^st Century’s Erie Canal”

Currently, only 12% of chips are manufactured domestically, compared to 37% in the 1990s, and many foreign competitors, including China, are investing heavily to dominate the industry. Nearly 75% of global semiconductor production is now occurring in East Asia and foreign government subsidies drive the majority of the cost difference for producing semiconductors overseas. Schumer said that his legislation would help turn the tide on this trend by bringing manufacturing back to America, along with investing in other key technology and R&D so New York and the country can lead the world in innovation.

Specifically, Schumer highlighted that the bill includes:

• $39 billion for the CHIPS for America Fund to provide federal incentives to build, expand, or modernize domestic facilities and equipment for semiconductor fabrication, assembly, testing, advanced packaging, or research and development.
• $11 billion for Department of Commerce research and development including creating a National Semiconductor Technology Center (NSTC) a public-private partnership to conduct advanced semiconductor manufacturing, with Albany Nanotech primed to be a top contender to serve as a major hub for the NSTC, and other specialized R&D programs that universities across the state are in a strong position to compete for.
• $2 billion for the DoD CHIPS for America Defense Fund.
• $200 million for the CHIPS for America Workforce and Education Fund to kick start development of the domestic semiconductor workforce, which faces near-term labor shortages, by leveraging activities of the National Science Foundation.
• A new Investment Tax Credit for semiconductor manufacturing facilities and equipment.
• $10 billion Regional Technology Hubs to support regional economic development efforts around the country to not only research and innovate technologies, but also manufacture them here in America.
• $1.5 billion for the Public Wireless Supply Chain Innovation Fund to spur the race to 5G, software-based wireless technologies, and innovative ‘leap-ahead’ technologies in the U.S. mobile broadband market. Schumer said that New York companies like JMA Wireless would be first in line for the $1.5 billion in federal incentives for next generation telecommunications tech included in his bill. This investments builds on the $65 billion to expand high-speed internet across the country passed in the Bipartisan Infrastructure & Jobs Law in which Schumer made sure to include Build America, Buy America provisions to ensure companies like JMA Wireless would build the technology used in the high-speed internet expansion.
• Increased investment for National Science Foundation (NSF) Research and Development Programs, including through a new technology directorate as proposed in Schumer’s original bipartisan Endless Frontier Act, and STEM education and training programs. Schumer said the region’s top research schools connected throughout the SUNY system, and others would be able to tap the increased investment for the NSF. Community colleges would also be able to utilize new investment for workforce training, including for the semiconductor industry.
• $13 billion to build the STEM workforce. Authorizes funding for STEM education, including scholarships, fellowships, and traineeships to create workers in critical fields, including to establishing an artificial intelligence scholarship-for-service program, a national network for microelectronics education, and cybersecurity workforce development programs. 
• $2 billion to strengthen small manufacturers. Triples funding for Manufacturing Extension Partnership, to support small- and medium-sized manufacturers with cybersecurity, workforce training, and supply chain resiliency.
• New investment to combat Supply Chain Disruption. Leverages the Manufacturing Extension Partnership to creates a National Supply Chain Database, to assist the businesses with supplier scouting and minimizing supply chain disruptions.
• Over $800 million to grow Manufacturing USA. Supports the creation of new competitively-awarded manufacturing research institutes with expanded capacity for education and workforce development.
• Infusion of new funds for the Department of Energy National Labs like Brookhaven National Lab. Funds will advance research and development, including in key technology areas like quantum computing, artificial intelligence (AI), and more.

Schumer explained that New York is uniquely suited to take advantage of these federal investments to reassert America’s global technological leadership. New York is currently home to over 80 semiconductor companies that employ over 34,000 NY workers, including global industry leaders like GlobalFoundries, Wolfspeed, onsemi, IBM, and other major microchip and innovation companies that support them like Corning Inc. In addition, Schumer said that New York offers dozens of shovel-ready sites primed for new investment from the semiconductor industry other companies in the innovation economy. 

Schumer has a long history of fighting to advance semiconductor manufacturing and R&D and the broader tech economy at the federal level. In May 2020, Schumer introduced his bipartisan Endless Frontier Act to make a surge new resources into federal R&D through the creation of a National Science Foundation technology directorate focused on key technology areas like quantum computing, advanced energy, AI, high performance computing, and more. Schumer’s Endless Frontier Act also proposed a new $10 billion regional technology hub program to invest in regions around the country with great potential to lead the nation in technology research, development, and manufacturing. In June 2020, Schumer introduced his bipartisan American Foundries Act to authorize new federal incentives for expanding domestic semiconductor manufacturing and R&D. Schumer successfully added this bill as an amendment to the Fiscal Year 2021 National Defense Authorization Act (NDAA). In June 2021, Schumer then successfully passed through the Senate his U.S. Innovation and Competition Act (USICA), legislation he introduced that combined his Endless Frontier Act to make a significant investment in research, development, manufacturing and innovation with other competitiveness legislation. As part of this package, Schumer also included $52 billion in emergency supplemental appropriations to implement the semiconductor-related manufacturing and R&D programs that he had successfully pushed to authorize in the Fiscal Year 2021 National Defense Authorization Act and that are at the heart of the bill which passed today. The House passed its companion legislation to USICA, the America COMPETES Act, this past January and negotiations continue to reconcile the differences between the two bills.  The bill that has passed this week combines the federal semiconductor incentives Schumer has been pushing with the investment in R&D, tech hubs, manufacturing, and other innovation programs from his Endless Frontier Act.

Schumer said that this major federal investment would touch every corner of New York:

Capital Region

Schumer’s legislation will help speed up and expand further opportunities to build on the Capital Region’s GlobalFoundries’ announcement last year of building a second chip fab in Malta, focused primarily on auto and military chip production, creating thousands of jobs on top of the 3,000 employees that GlobalFoundries already employs in the area.

The Capital Region is also poised to benefit with the Albany Nanotech complex potentially becoming the major hub of the nation’s first National Semiconductor Technology Center (NSTC), which is created by Schumer’s bill. Schumer has worked non-stop to uplift Albany Nanotech and the Capital Region as the best candidate to lead the nation in semiconductor research. In March 2021, following a call with the CEOs of IBM and Intel, Schumer announced a new partnership that will bring hundreds of jobs to the Albany region to conduct new semiconductor research, boosting the region’s already robust local chip research presence. Then, after bringing the Commerce Secretary to Malta to announce GlobalFoundries second chip fab last year, Schumer had Secretary Raimondo meet with Albany Nanotech leaders to discuss the facility’s cutting-edge capabilities. The senator continued this momentum earlier this year by bringing the Commerce Deputy Secretary Don Graves to tour the facility as well and meet with Governor Hochul and industry leaders to reiterate how the Capital Region and Albany Nanotech are uniquely suited to quickly stand up the NSTC. 

Central New York & The Mohawk Valley

Major sites like the Marcy Nanocenter and White Pine Commerce Park are already attracting interest from large semiconductor-related companies due to their shovel-ready infrastructure, and Schumer said his legislation would be the lightning rod for luring more jobs to Central NY and the Mohawk Valley. The industry has already taken notice, as highlighted by Cree-Wolfspeed’s $1.2 billion investment to build the world’s largest 200mm Silicon Carbide semiconductor facilities at Marcy, which will create over 600 jobs.

Schumer also said Syracuse tech companies like JMA Wireless would be able to take advantage of other historic incentives like the $1.5B in 5G and telecomm tech development that could accelerate their expansion locally, and the R&D investments included in the bill will support the region’s efforts in UAVs, quantum computing, and other technologies at Syracuse University, Rome Lab, and other area research institutions.

Finger Lakes

Schumer said the federal investment in his bill will further build on the recent $139M, 270 job expansion in Monroe County by Corning Inc. to support optic technology for the growing chip industry, with further expansion of the domestic semiconductor industry helping bolster this plant as more companies would rely on the components made at the new Fairport facility. Other companies that can benefit and grow are Akoustis Inc that employ about 100 in Canandaigua making semiconductor “RF Filter” chips used in mobile phones and Wi-Fi routers.

In addition, the Finger Lakes’ high concentration of research institutions from the University of Rochester to RIT make the region uniquely suited to benefit from the historic increases in the bill for to the National Science Foundation, which the Director of the NSF got to see firsthand when Schumer personally brought him to see their research facilities earlier this year. Schumer also cited a recent study authored MIT economists that analyzed over 100 regions to determine which are best poised to become new Tech-Economy hubs if provided federal scientific research and development investment and determined that Rochester, NY ranked No. 1 as the nation's top region ripe for technological and economic growth.

 

Western New York

In addition to shovel-ready sites like STAMP that could benefit from the chip incentive legislation, Schumer said that Western New York’s spot as a current finalist in the EDA Regional Challenge for its manufacturing cluster proposal make it a top candidate to compete for funding through the new regional technology hub program in his bill.

Schumer also said that research institutions like the University at Buffalo and technical training schools like Erie Community College are in a strong position to compete for manufacturing training and new NSF funds set to be boosted as well by his bill.

Southern Tier

The greater Binghamton area has already emerged as a growing hub for battery manufacturing and with Binghamton University (BU) as a finalist in the EDA Regional Challenge for its battery R&D proposal, Schumer said his bill could strengthen this plan even further by helping grow this critical supply chain in the Southern Tier.  In addition, top research schools like BU and Cornell University would be able to enhance their efforts through more federal research dollars and bolstering their workforce training initiatives. 

Hudson Valley

Schumer said the Hudson Valley is home to many chip and tech companies looking to grow like IBM in Westchester and Dutchess Counties, SeeQc in Elmsford, and onsemi, which will soon be fully taking over the GlobalFoundries facility at iPark in East Fishkill that will be able to utilize these historic incentives to bolster their operations. Plus, the close proximity to NYC and available sites like the former TechCity Campus in Ulster County, which Schumer recently pitched to a major battery company for a potential 500 job expansion, making the region a prime area for growth from his tech investment. Schumer said that the Hudson Valley’s colleges and universities can also benefit from this investment. For example, SUNY New Paltz is home to the Hudson Valley Additive Manufacturing Center and the Hudson Valley Venture Hub which are both are longstanding technology and entrepreneurial hubs that can grow with this new kind of investment, providing additional guidance and support beyond the hundreds of Hudson Valley and state businesses and entrepreneurs they have served to date.

USPTO and WIPO on ADR for SEP Disputes

The USPTO has announced a partnership with WIPO concerning utilizing alternative dispute resolution for SEP disputes.  The Press Release states:

The United States Patent and Trademark Office (USPTO) and the World Intellectual Property Organization (WIPO) today agreed to undertake joint efforts to facilitate the resolution of disputes related to standard essential patents.

Standard essential patents, or SEPs, are patents that have been declared essential to a given technical standard. As part of the standards-setting process, patent owners may agree to license SEPs on fair, reasonable, and nondiscriminatory (FRAND) terms. Standards touch all aspects of modern life and include video compression, wireless communication technologies, computer connection standards, automotive technology, and more.

“International standards, and the role of patents that are essential to them, play an important role in promoting a strong national and global economy,” said Under Secretary of Commerce for Intellectual Property and USPTO Director Kathi Vidal. “The USPTO is grateful that Director General Tang recognized the USPTO’s leadership role in advancing discussions on standard essential patent policies. Our work with WIPO underscores the USPTO’s view that SEP policy is an international issue of international importance. This agreement will leverage existing resources at both the USPTO and WIPO, supporting options to enhance the efficiency of licensing of standard essential patents, and promote resolution of disputes related to those standards.”

The signing of the memorandum of understanding occurred during a meeting this week between Director Vidal and WIPO Director General Daren Tang on the sidelines of WIPO’s General Assembly in Geneva, Switzerland.

Under the terms of the agreement, the USPTO and WIPO will:

• Cooperate on activities that will lend efficiency and effectiveness to the resolution of disputed standard essential patent matters by leveraging existing WIPO Arbitration and Mediation Center and USPTO resources, and
• Engage in stakeholder outreach to raise awareness of the services provided by the WIPO Arbitration and Mediation Center through joint USPTO-WIPO programs.

The agreement will continue in operation for five years from the date of signing.

“We appreciate all the work Director General Tang and WIPO have done in this critical area. We look forward to a successful collaboration and engaging stakeholders to ensure we shape dispute resolution that will facilitate participation and implementation of standards by all innovators including small to medium-sized enterprises,” remarked Director Vidal.

“Alternative Dispute Resolution (ADR) has time and again demonstrated its value in the efficient and timely resolution of commercial disputes. In the last few years, the WIPO Arbitration and Mediation Center has been facilitating the resolution of SEP-related disputes and the new collaboration with the USPTO is an exciting development which will contribute to improving the efficiency of standard implementation,” noted Director General Tang.