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Mr. Peter Anthony Hovis
793 E Silversword Ln
San Tan Valley, AZ 85140-5537

Dear Mr. Hovis,

Thank you for contacting me about reinvigorating the semiconductor industry. I appreciate your thoughts on this issue and welcome the opportunity to respond.

In the past four decades, domestic semiconductor chip fabrication (or fabs) has declined precipitously.  Today, only 12% of chips are fabricated in the United States. East Asia now controls over 80 percent of global chip fabrication. This shift is primarily the result of cheaper labor and supply costs.

Cell phones, cars, our defense systems, and much more depend on semiconductor chips yet America relies on foreign nations, including China and its neighbors, to meet domestic chip demand. The combination of supply chain shortages, COVID-19, increased consumer demand, decreased production and logistics perplexities have created nationwide chip shortages.

This supply chain crisis sparked a rush to bring chip fabs back to America and companies are investing in Arizona to build new or expand existing fabs. Chip companies have expressed concerns about the cost of research and development in a rapidly changing industry. In particular, they must compete with Chinese state-owned enterprises who heavily subsidize research and development often leading to an uneven playing field.

Please know that I will keep your support for semiconductors produced in the United States in mind should legislation concerning the topic circulate through Congress.

Once again, I appreciate your thoughts and concerns. It is an honor to serve as your United States Congressman. Your suggestions are always welcome, and if ever I may be of assistance, please do not hesitate to contact me. To receive the latest legislative updates and news you can sign up for my e-newsletter by visiting my website at www.gosar.house.gov.