U.S. Department of Commerce (DOC) Secretary Gina Raimondo and Department of Defense (DOD) Secretary Lloyd Austin outlined the national security need for approval of the Bipartisan Innovation Act (BIA) before month’s end in a letter sent to congressional leadership last week.

The DOC posted the letter July 13, the day it was sent to Speaker Nancy Pelosi, Majority Leader Charles Schumer, Minority Leaders Kevin McCarthy and Mitch McConnell. In the letter, the Secretaries stressed the urgency of passing BIA, writing that the country's "economic and national security depends on our ability to invest in the technologies of today and tomorrow."

"U.S. leadership in technology and innovation has long underpinned U.S. economic prosperity and military strength, but must not be taken for granted," the letter states. "For the first time we face a strategic competitor in China that is both determined to become the global leader in the industries of the future and has the means and resources to do so if we are not on our game."

Raimondo and Austin focused on the importance of semiconductors, an essential component of computers and electronic devices, calling them "ground-zero in this technological competition."

"They are driving innovation and competitiveness in nearly every emerging technology – from artificial intelligence to next-generation wireless technology, to biotechnology – and also have a wide range of critical national security applications," the Secretaries wrote.

BIA, the Secretaries state, "will prioritize strengthening domestic manufacturing capacity and supply chain resiliency, spur domestic semiconductor manufacturing, make transformational commitments to research and development, and help counter competition from China, while also shoring up U.S. competitiveness, lowering costs and creating jobs."

Crucial to the success of the BIA, the Secretaries state, is to fully fund the Creating Helpful Incentives to Produce Semiconductors (CHIPS) in America Act, according to the letter. CHIPS, the Secretaries wrote, "is the only way to reduce our reliance on foreign-produced semiconductors. This funding is critical for our national security, will advance domestic supply, create good-paying jobs and will catalyze billions more in private investment."

Raimondo and Austin wrote the urgency in passing the BIA by the end of July; otherwise, the U.S. "will miss out on the current wave of semiconductor investment."

Chip producers must make capital expenditure decisions now to meet the enormous increased demand," they wrote. "If we do not act, they will expand in countries that are already aggressively offering incentives, rather than here in the United States." The letter cites incentive programs on offer in other countries to meet the tech industry's investment cycle.

"Firms are eager to make those investments in the United States," the letter states, and that funding CHIPS shows the U.S "commitment to robust domestic semiconductor capacity and will give companies throughout the supply chain the confidence they need to move forward with investments here." 

"But this growth in the industry," the Secretaries caution, "will move forward with or without the United States."

Raimondo and Austin wrote that the country has a "once-in-a-generation opportunity" to establish a sustainable" robust and competitive innovation economy." The Secretaries state delaying the passage of the BIA "will result in a deficit of semiconductor investment from which we may not be able to recover."

"The Bipartisan Innovation Act is critical to ensuring America’s global leadership in the 21st Century," the Secretaries wrote, "and it is essential that we move quickly to deliver this bipartisan legislation for the American people."