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EXECUTIVE VIEWPOINT

The American Industrial Compact Consortium

seeks to spark innovation and investment

By Brian Long [American Industrial Compact Consortium]

The opinions expressed in this essay are those of the author and not Chip Scale Review.
T he American I ndust rial Congress in 44-years, and may rescue part of our economy, and ensuring our

Compact (AIC) Consortium
the remaining U.S. companies in the
national defense. Microelectronics is the
was announced on July 4,
2019; its purpose is to address microelectronics arena. hub on which every spoke on the wheel
of industry revolves, and innovation has
The CHIPS for America Act became
the shortfalls in the behavior of American law as a part of the 2021 National been the grease that has lubricated the
industr y toward the communities Defense Authorization Act on January transformation of our nation from an
in which they operate, toward their 1, 2021. It is the first Industrial Policy industrial power to an information power.
workforce, and to the nation as a whole. Act enacted by Congress in 44 years. To meet the challenges we face with
The impetus for forming the AIC was As such, it seeks to strengthen the U.S. respect to the future of innovation and
the belief that captains of our flagship industrial base for microelectronics by help achieve the industry goals defined in
industries must not only raise their providing $52.6B in incentives over the proposed legislation, we will need to
sails and set course based on achieving five-years to industry and academia to incorporate new workforce development
purpose and profit, but also accept the expand existing manufacturing capacity, initiatives that put skills into hands, and
responsibility to these communities that build entirely new capacity, fund the those hands into this industry. This means
comes with their endeavors. This revises acquisition for new process equipment, public/private partnerships and elevating
Milton Friedman’s notion that only and train new workers for fabs as well our youth into the spotlight. To this end,
shareholders count. Our nation’s history as in the packaging of microchips, the AIC is engaged with technical trade
offers many lessons from past challenges assembly and testing of devices, and/or schools across the country; we are putting
that can serve as object lessons to enable research and development. It also puts up the word out on the street, and we intend
industry and the private sector to engage guard rails to prevent the further transfer to use funding from the Act to walk
responsibly. Interestingly, in October, of technology abroad. these institutions into the future. There
2019, the Business Round Table issued The bulk of the funding – $39B – are scores of young people in our nation
its own recommendations to its members goes toward new facilities, equipment that are “do it yourself” minded—they
calling for greater attention to the needs and workforce development activities. procure piece parts and software online
of the communities in which their Twelve billion goes toward research to create their own innovations, similar
member companies operate, and to the and development, with the funding to what we used to do with components
interests of workers. split $10B for commercial R&D, and from Radio Shack. As the Chairman
For decades, American policies $2B for defense R&D. The remainder of the American Industrial Compact,
guaranteed U.S. industries free trade— of the funds, $1.6B, are earmarked for I want to foster this entrepreneurial
not just within our nation, but also international collaboration activities spirit. I remember my first Radio Shack
globally. From that experience, we see involving the U.S. and those allied nations hobby kit — a radio. I remember the
how contrasting narratives concerning whose export controls are identical crackle of the speaker powered by a nine-
profits versus other national interests has to those of the United States. The Act volt battery receiving a radio signal;
eroded other national goals and needs, focuses investments on heartland states, and I remember the elation I felt from
particularly regarding technological and workforce development involving my accomplishment. That same spark
primacy, economic equity across all economically disadvantaged individuals of enthusiasm is what I hope we can
regions of the nation, and resiliency (defined as persons considered minorities engender in the young people of today.
in times of crisis—something that the and/or persons from rural communities We have to make the modern equivalent
COVID pandemic demonstrated we whose income [for a family of four] is of the “Radio Shack” experience cool
had forsaken in the extreme. The use below the national mean income level). again, just as our fathers’ generation
of COVID-induced manufacturing As you read this article, you must ask experienced the space race, and missions
slowdowns is spurring countries to once yourself, how does this apply to me? Well, to the Moon. We have to put our young
again make resiliency a priority, spurring from my perspective, microelectronics is “geeks” into the spotlight and set new
on new domestic investments in industrial the centerpiece of absolutely everything examples for others to follow. This means
capacity. The CHIPS for America Act is in our lives. It is the central nervous that we must also make it exciting again
the first Industrial Policy Act enacted by system of our country driving every to advance technology.

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36 Chip Scale Review July • August • 2022 [ChipScaleReview.com]