April 15, 2024 - WASHINGTON, D.C — Last Friday, U.S. Senators Alex Padilla and Laphonza Butler (both D-Calif.), along with Representatives Zoe Lofgren (D-Calif.-18), Ranking Member of the House Science, Space, and Technology Committee and Chair of the California Democratic Congressional Delegation, and Doris Matsui (D-Calif.-07), led the entire California Democratic delegation in urging Secretary of Commerce Gina Raimondo to establish the National Semiconductor Technology Center (NSTC) headquarters in California.

California boasts a globally leading semiconductor ecosystem. The letter highlights several important advantages of locating the NSTC headquarters in California, including its unparalleled leadership in technology innovation, a thriving and collaborative ecosystem, and a deep commitment to fostering a diverse and skilled workforce.

This decision will be even more consequential after the CHIPS Program Office (CPO) recently announced the cancellation of the third CHIPS Act Notice of Funding Opportunity (NOFO) for advanced commercial research and development (R&D) facilities in the United States. Padilla and Governor Gavin Newsom issued a statement earlier this month rebuking the cancellation.

“As a pivotal player in the semiconductor industry, the state consistently brings together thought leaders and innovators across various sectors, including industry, academia, and government,” wrote the lawmakers. “This role has been instrumental in incubating cutting-edge technologies and solidifying California’s position as a global leader in next-generation innovations. In the absence of direct federal investments to spur and scale private R&D activities, it is even more imperative that the [National Semiconductor Technology Center] be best positioned for success.”

“We strongly believe California is the ideal choice for the National Center for the Advancement of Semiconductor Technology — or Natcast — to operate the NSTC headquarters,” continued the lawmakers. “This decision will not only unlock groundbreaking technological advancements but also solidify the United States’ position as the leader in the global semiconductor sector.”

The letter specifically expresses support for Governor Newsom’s January letter which made the same request. The lawmakers also further highlighted California’s diverse talent pool that draws from an array of prestigious research universities, minority-serving institutions, and federally funded research labs.

In canceling the third CHIPS Act NOFO, CPO stated that the CHIPS for America program remains dedicated to investing $11 billion in creating a robust domestic R&D ecosystem through the NSTC.

In addition to Senators Padilla and Butler as well as Representatives Lofgren and Matsui, Speaker Emerita Nancy Pelosi (D-Calif.-11) and Representatives Pete Aguilar (D-Calif.-33), Nanette Barragán (D-Calif.-44), Ami Bera (D-Calif.-06), Julia Brownley (D-Calif.-26), Salud Carbajal (D-Calif.-24), Tony Cárdenas (D-Calif.-29), Judy Chu (D-Calif.-28), J. Luis Correa (D-Calif.-46), Jim Costa (D-Calif.-21), Mark DeSaulnier (D-Calif.-10), Anna Eshoo (D-Calif.-16), John Garamendi (D-Calif.-08), Robert Garcia (D-Calif.-42), Jimmy Gomez (D-Calif.-34), Josh Harder (D-Calif.-09), Jared Huffman (D-Calif.-02), Sara Jacobs (D-Calif.-51), Sydney Kamlager-Dove (D-Calif.-37), Ro Khanna (D-Calif.-17), Barbara Lee (D-Calif.-12), Mike Levin (D-Calif.-49), Ted Lieu (D-Calif.-36), Kevin Mullin (D-Calif.-15), Grace Napolitano (D-Calif.-31), Jimmy Panetta (D-Calif.-19), Scott Peters (D-Calif.-50), Katie Porter (D-Calif.-47), Raul Ruiz (D-Calif.-25), Linda Sánchez (D-Calif.-38), Adam Schiff (D-Calif.-30), Brad Sherman (D-Calif.-32), Eric Swalwell (D-Calif.-14), Mark Takano (D-Calif.-39), Mike Thompson (D-Calif.-04), Norma Torres (D-Calif.-35), Juan Vargas (D-Calif.-52), and Maxine Waters (D-Calif.-43) also signed the letter.

Senator Padilla is a strong advocate for a robust and diverse semiconductor industry. In 2022, Senator Padilla and Senator Reverend Raphael Warnock (D-Ga.) sent a letter urging Senate leadership to support provisions in the final version of the United States Innovation and Competition Act that would require semiconductor companies receiving federal assistance for research, design, and manufacturing to invest in a more diverse workforce and improve procurement from minority-, veteran-, and women-owned businesses. Padilla and Warnock applauded the passage of one of these provisions through the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act later that year.

Full text of the letter is available here and below:

Dear Secretary Raimondo,

As members of the California congressional delegation, we write to express our strong support for Governor Newsom’s January 29, 2024, letter requesting the establishment of the National Semiconductor Technology Center (NSTC) headquarters in California. Especially in light of the Department of Commerce’s recent decision to revoke the Notice of Funding Opportunity for the construction, modernization, or expansion of semiconductor research and development (R&D) facilities, we urge you to consider the unique and critical advantages California brings to the table: its unparalleled leadership in technology innovation, a thriving and collaborative ecosystem, and a deep commitment to fostering a diverse and skilled workforce.

Fueled by Silicon Valley’s culture of innovation, California has established the world’s foremost and most complete semiconductor ecosystem. The state’s diverse talent pool, nurtured by prestigious R1 universities, minority-serving institutions, and federally funded research labs, fuels groundbreaking advancements while establishing the state as a leading hub for workforce education and training. This ecosystem represents a powerful collaboration among industry leaders, dynamic entrepreneurs, skilled researchers, dedicated workforce training partners, top-tier research universities, and insightful private investors. Together, these entities efficiently and seamlessly translate ideas from conceptualization to real-world application. This environment places California at the cutting edge of semiconductor technologies and innovation, and thus emerging fields like quantum computing, artificial intelligence, advanced communications, and innovative energy solutions.

As a pivotal player in the semiconductor industry, the state consistently brings together thought leaders and innovators across various sectors, including industry, academia, and government. This role has been instrumental in incubating cutting-edge technologies and solidifying California’s position as a global leader in next-generation innovations. In the absence of direct federal investments to spur and scale private R&D activities, it is even more imperative that the NSTC be best positioned for success. A decision to leverage California’s existing resources will maximize the impact of available CHIPS funding and demonstrate the administration’s dedication to advancing U.S. global leadership and to accelerating industries of the future.

We strongly believe California is the ideal choice for the National Center for the Advancement of Semiconductor Technology – or Natcast – to operate the NSTC headquarters. This decision will not only unlock groundbreaking technological advancements but also solidify the United States’ position as the leader in the global semiconductor sector.

Sincerely,
Source: Senator Alex Padilla