CHIPS ACT OF 2022--Continued
Mr. President, as the Presiding Officer knows, the United States of America has long been at the vanguard of global scientific and technological innovation, and that leadership has helped power our economy and strengthen our leadership…
Mr. President, as the Presiding Officer knows, the United States of America has long been at the vanguard of global scientific and technological innovation, and that leadership has helped power our economy and strengthen our leadership position in the world.
That competitive edge is now at risk. It is at risk because we have failed to renew our national commitment to one of the key tools that has brought us that success in the past: making robust Federal investments in scientific research and development.
The bill before the Senate, called the CHIPS and Science Act of 2022, aims to stop this downward drift and propel us forward again in the area of discovery, in areas of innovation and manufacturing. It honors a long, long tradition of American excellence in research and invention.
If you look back over our history, America has always been on the leading edge of science, of technology, of engineering, and mathematics. That spirit has been with us since our founding, but it truly flourished in the decades following the Second World War, with new inventions springing from American minds every year and moving us forward at an accelerated pace.
American astronauts took humanity to the Moon for the first time. American computer scientists invented the internet and changed the world. In fact, it was during this explosion of discovery that an American engineer created the first integrated circuit in 1958, and that invention would pave the way for the microchips we use today and which are a big part of the legislation before us.
In the 20th century, the United States was the innovation capital of the world. In 1960, America generated 69 percent of all research and development on the entire planet. This golden age flowed from the ingenuity of American visionaries, and it was fueled by our system of free enterprise and private investment.
But we cannot ignore another key ingredient in the success of that period, and that is the very large investment in cutting-edge research and development made by the Federal Government on behalf of the American people. Federal funds accounted for two-thirds of all American research and development investment in 1968--two-thirds from the Federal Government. In fact, all three of the American-made inventions and innovations I just mentioned--from building the rocket and the systems to land a man on the Moon and return him safely to Earth to inventing the internet, to creating that first microchip--those were fueled, in large part, by Federal Government investment, taxpayer investment, to strengthen the entire country.
For example, if you look at the history of the microchip, you will see that between 1987 and 1997--that decade--the R&D arm of the Department of Defense, what we call DARPA, disbursed around $870 million in Federal funding to 14 ship manufacturers across the country, which, in turn, made the American ship industry more competitive than ever.
That was then. Today, we see a changing story. We are still a leader in innovation, but we are at risk of falling behind and falling behind quickly. And, in doing so, we are ceding ground to our global competitors and adversaries. This is a time where standing still means going backward and going backward fast.
The U.S. share of global research and development has dropped by half, by a full 50 percent, in the last six decades, and the most recent figures available reveal that the Federal investment in R&D as a share of our gross domestic product has dropped by one-third over the last 40 years.
While we have been slipping, other countries are dramatically boosting their investments in these critical areas, fueling huge resources toward innovation. China's most recent 5-year plan calls for ramping up investments in research and development by more than 7 percent every year. China has made no secret of its desire to corner the market in AI, in quantum computing, in clean energy tech, and much more. And the Chinese Communist Party is putting resources where their plan is, mobilizing the investments needed to try to achieve that goal.
This is not only an issue of falling behind in the areas of innovation and discovery because, even if Americans are inventing new technologies, the benefit to the American worker of leading in the invention of new technologies is much diminished if the manufacturing of essential products that use those technologies simply goes offshore.
We spend a lot of time inventing new technologies here, but over the last many decades we have seen the offshoring of those technologies and the manufacturing of products with
those technologies to other parts of the world, at the expense of the American worker. We have seen that dramatic offshoring of jobs for decades, including in many areas that are critical to the success of our entire economy and to the needs of our national security.
An American may have invented the microchip, but today we produce only 12 percent of the world's microchips. And that is at a time when these chips are absolutely essential to almost every aspect of modern life, from running our washing machines to powering our military. At the same time, competitors like China are pairing their rising R&D investments with major funding for manufacturing, putting the money in for invention and putting the money in to make sure those inventions stay and are manufactured in China. China has put $150 billion toward manufacturing microchips over the last 8 years. And today, 19 of the world's 20 fastest growing microchip firms are in China.
So you can see how this creates an enormous challenge for America's competitiveness, for our economic strength, and for our national security. The technology we need today for our cars, our homes, our businesses, and our military is, in large part, produced overseas.
We have already fallen way behind in the manufacturing of strategically important technologies, and now we are also at risk of losing our edge in developing the critical technologies of the future.
This has got to change. In the face of these challenges, we have to ask ourselves two fundamental questions: One, how can we ensure that we continue to invent the key technologies of the future; and, second, how can we make and manufacture key products using those technologies right here in America?
That is why it is time for us to take a page out of our own history and reignite a golden age in American research, development, and manufacturing through robust Federal investments. And the bill before the Senate begins to take us down that road.
First and foremost, it includes $53 billion to supercharge microchip manufacturing in America. That will bolster our economic security and our national security.
For American families, more American-made microchips means we will be able to ease some of the strain on our supply chains that are leading to increased wait times for everything from cars to smartphones, to dishwashers. And in the long term, boosting our domestic production of chips will help spur homegrown manufacturing jobs and lower the prices of a wide range of goods and services.
More American-made chips also means we will be less reliant on foreign manufacturers to meet our military needs. Today, 90 percent of the high-end microchips--the most sophisticated microchips--are made in Taiwan. These are advanced chips on the market that power everything from consumer electronics to sophisticated military software and hardware. These microchips are in our jets. They are in our radar systems and much more.
So with this additional funding, America will have increased capacity to produce these high-end microchips right here at home so we are not relying on foreign countries to power the things our communities and our country rely on every day.
But while supporting the manufacturing of chips here at home is important, it is not enough to keep us competitive on other key fronts. As I said earlier, we need America to get back on the leading edge of research and development in a whole range of areas on technology's frontier.
Now is the time for us to boost innovation and to sharpen our edges across every technological front, from quantum competing to artificial intelligence, to so much more. And that is why this legislation calls for significant new investments in major scientific institutions. It would authorize an increase of $36 billion for the National Science Foundation, an increase of $5 billion for the National Institute of Standards and Technology in my home State of Maryland, and an increase of $12.9 billion for the Department of Energy's Office of Science. These increases represent roughly a doubling--a doubling--of the Federal resources dedicated to these important Agencies. It also includes an increase of $11 billion for the Department of Commerce over 5 years to develop regional technology hubs around the country so that every part of the United States and communities in every corner of the country can benefit from these investments.
These are major increases. These are authorized increases--these parts with respect to future technologies as opposed to the chips portion of the bill. So, No. 1, we need to make sure these funds are actually appropriated; and, second, we need to ensure that these funds are deployed in the most strategic and effective way. That is why our bill includes a bipartisan provision that I authored with Senator Blunt of Missouri to ensure that the United States has the tools it needs to monitor and address new frontiers in science, technology, engineering, and mathematics.
This portion of the bill includes two elements: First, it directs the National Academy of Sciences to identify the critical emerging technologies before us; and, second, it directs the National Academies to assess how well the United States is meeting those science and technology challenges through our global leadership and through the investments we are making here at home. I think we all recognize that we can't determine the path that we should chart as a country without getting a good look at the terrain and the horizon and even try to peer over the horizon. And charting that course is only helpful if we monitor our progress along the way to see if we are meeting our goals.
That is about developing a national early warning system for technologies in which our country's best minds are focused on the technologies of the future so that we don't get caught flat-footed in the face of emerging opportunities.
We have seen in the case of 5G technology what can happen when we are not tracking the possibilities, and we get blindsided. The reality is China beat us in the transition from 4G to 5G networks, and it wasn't because we lacked the talent or the skill or the resources or the drive to win the 5G race. We failed to build a comprehensive system for 5G deployment fast enough because we did not have a national strategy. We had blind spots. The market didn't fill them. It requires a national plan of action. That provision in the legislation will address that shortcoming.
And as we revitalize innovation here at home, we have got to get all of our talent on the field. We need to deploy all of our brainpower in order to fuel this renaissance in American technological leadership. This bill will provide major investments in our 21st century workforce to create jobs and inspire the next generation of our innovators.
I am pleased that a bipartisan provision is included in here that was authored by our colleague Senator Warnock, which will direct additional Federal funds toward emerging research institutions of higher education, including our Nation's historically Black colleges and universities and our minority-serving institutions.
On top of that provision, I am pleased that this bill includes a bipartisan measure that I wrote with Senator Tillis of North Carolina. Our provision would help advance the research classification of HBCUs around the country that already have strong research programs and make them competitive among the highest caliber of research universities for more Federal funding--to take them from R2s to R1s. This will open the doors of opportunity for more students, faculty, and staff across the country. In my State of Maryland, we have two HBCUs that would directly benefit from this provision: Morgan State University and the University of Maryland Eastern Shore. This is an investment in our future.
These are just some of the elements in this bill that will help foster a sustained American leadership in emerging technologies into the future. But even when this bill is passed--and I urge all my colleagues to vote for it--our work is not over. The Senate and the House have spent the last 2 years working on a package to sharpen America's competitive edge on the world stage. The bill before us does not include many of the other important measures that also enjoy bipartisan
support and are still part of the conference committee. So we need to get to the remainder of those provisions and get them over the finish line.
For example, one of the pieces of that larger bill that is not included in the measure before us would help protect American intellectual property and protect our technology secrets against theft by foreign companies or other countries. We know that in today's high- speed, fast-paced economy, where information zips around the world at the speed of light, it is easier than ever to steal someone else's technology for your own purposes. At a summit in London earlier this month, FBI Director Chris Wray warned companies from across Europe that Beijing is developing more advanced strategies to ``ransack'' Western companies, pillaging intellectual property, and stealing inventions from Americans and others around the world in the high-tech sector. We have to do everything we can to protect ourselves against that malign conduct.
For example, if you are an American company and a foreign company in China steals your intellectual property, the only recourse you currently have at your disposal is to file a lawsuit--file a lawsuit and go to court. It is like taking a peashooter to a knife fight, especially when you are dealing with a foreign government, like the Government of China. That is why I introduced a bipartisan bill with Senator Sasse to arm the U.S. Government with the authority to impose tough sanctions on companies that systematically plunder U.S. technology secrets and intellectual property.
That measure, as I said, is part of a larger package, and we need to get that done by the end of the year. For now, I urge my colleagues on both sides of the aisle to support the bill that is before us this week. It is a key step forward to ensure that America remains the world's leading developer of key technologies and will help bring that important high-tech microchip manufacturing back here to the United States.
We have the brainpower. We have the institutions. We have a system that can fuel tech entrepreneurs. We need to match those very important assets with a willpower for national success and progress.
History tells us that a key ingredient in America's innovation success story has been Federal investment in R&D--much of the R&D that companies will not invest in because it is sometimes too risky. It is an investment that we make on behalf of the American people to ensure our national success and our global leadership. We are today witnessing the efforts of our competitors and, in many cases, our adversaries to overtake us in these key areas. And we should not and we must not surrender our leadership in those places that shape our economy and shape our world.
We must harness the full power of American innovation, as we have done in the past, to meet the challenges of our time. And this bill is an important part of that effort. And I urge my colleagues to support it.
I yield the floor.