Taylor-Kale: Commerce, Defense are 'working together to expand domestic semiconductor production capacity in a coordinated fashion'

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Assistant Secretary of Defense for Industrial Base Policy Dr. Laura Taylor-Kale | U.S. Department of Defense

Taylor-Kale: Commerce, Defense are 'working together to expand domestic semiconductor production capacity in a coordinated fashion'

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The U.S. Departments of Commerce and Defense signed a Memorandum of Agreement to closely collaborate to strengthen the U.S. semiconductor defense industrial base. The MOA will increase collaboration, information sharing and coordination between the departments on the CHIPS for America's incentives program, according to a July 26 news release.

“This agreement is an important step forward in increasing the capacity and resiliency of our domestic semiconductor industrial base,” Assistant Secretary of Defense for Industrial Base Policy Dr. Laura Taylor-Kale said in the release. “It is essential for DoD and DOC to consult one another to ensure we are making complementary investments that support a robust semiconductor industrial base. Both Departments are working together to expand domestic semiconductor production capacity in a coordinated fashion.”

The MOA will facilitate coordinated protocols for promoting a "robust and resilient" supply chain by aligning the departments' priorities and decisions, the release reported. The MOA will identify areas of consultation, such as sharing information on the semiconductor needs for the Defense Industrial Base, DoD investment priorities, plans and funding to maintain current semiconductor programs and investments in emerging technologies critical to any future national security programs.

"The MOA is a crucial step forward in implementing the bipartisan CHIPS and Science Act, a key part of President Biden’s Investing in America agenda," the DOC said in the release. "The MOA will advance this agenda to strengthen manufacturing and supply chains here at home, solidify America’s global leadership, and protect long-term national security."

The MOA will also facilitate collaboration on potential investment applications to ensure the agencies are making complementary decisions that maximize federal investments under the CHIPS Incentive Program and the Defense Production Act and Industrial Base Analysis and Sustainment funds, the release reported.

“Advancing U.S. national security is a top priority," CHIPS Program Office Director Michael Schmidt said in the release. "Our Departments must work together and align on where and how we are making investments to strengthen the U.S. industrial base. This agreement will enable our teams to coordinate the national security review of applications, produce semiconductor chips in America that our military relies on and bolster our domestic supply chain resiliency."

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