The Mercury News

United States must rebuild its technology infrastruc­ture

- By Robert Morcos Robert Morcos is founder and CEO of Social Mobile, a custom technology hardware provider based in Miami.

The Biden administra­tion has made rejuvenati­ng the American economy a top priority, focusing on creating industrial jobs. Strengthen­ing our technology manufactur­ing capability must be part of that effort.

The ubiquity of brands such as Huawei and platforms like Tiktok have revealed one of our nation’s biggest weaknesses and vulnerabil­ities: We no longer manufactur­e much of the technology powering our daily lives.

Whether an investment banker, a small business owner, or a soldier, the devices used to power today’s businesses are generally made overseas. Some manufactur­ing nations are allies. Some aren’t. Either way, the United States faces grave danger in losing the global technology hegemony it once held.

Domestic technology manufactur­ing capacity matters to all companies, across verticals and industries. As a Miami-based company and Google Android Certified partner, we have made and sold more than 11 million devices to startups and Fortune 500s alike — from the custom tablets that ensure your pizza arrives on time to a first-of-itskind vaccine administra­tion device.

Since our founding a decade ago, we have had no choice but to rely on foreign companies for the the semiconduc­tors and other parts used in our devices. Without a domestic manufactur­ing supply of these critical components, our ability to meet customer needs in a timely, cost-effective manner becomes compromise­d. Social Mobile is part of a growing movement pushing Congress for reforms to encourage the resurrecti­on of American technology manufactur­ing — especially semiconduc­tors.

U.S. manufactur­ers once controlled most of the global semiconduc­tor manufactur­ing market. But, the export of manufactur­ing capacity and intellect has allowed Taiwan and China to take the lead. In fact, U.S. share of global chip manufactur­ing could fall to just 10% by 2023.

Trade tensions with China are precarious and have increased prices. Escalation of those tensions could critically harm our economy.

So, what to do? President Joe Biden’s February executive order reviewing semiconduc­tor and IT supply chains represents a good start as a precursor to additional, sustained and decisive government action. Critical legislatio­n like the CHIPS for America Act has garnered bipartisan sponsorshi­p, and is included in the fiscal year 2021 National Defense Authorizat­ion Act. However, Congress and the Biden administra­tion need to implement additional action and funding to support incentives and initiative­s necessary to facilitate this shift, such as the $20 billion in proposed matching funds for domestic manufactur­ing and research and developmen­t programs.

Congress should ensure that other initiative­s — such as $15 billion in grants for building and modernizin­g tech fabricatio­n facilities here in the United States — are funded properly and existing regulation­s and codes, like the Federal Clean Air Act, are optimized to incentiviz­e U.s.-based companies to commit resources to increasing manufactur­ing capacity. Existing outlets for essential dialogue between the United States and foreign trade partners, like the Economic Prosperity Partnershi­p Dialogue, should also serve as key tools used by the Biden administra­tion to solve this issue.

The viability of the enterprise technology market represents one of the most important elements of our modern economy. Without a reliable means for producing the semiconduc­tors that power these devices here in the United States, we are entirely reliant upon foreign sources. That poses a significan­t risk to our operations, and our nation.

Biden has talked about the need to return manufactur­ing jobs to American soil as a crucial part of our recovery from the economic devastatio­n wrought by COVID-19. Now is the time for the administra­tion, and Congress, to act together to make an impact. A vibrant technology manufactur­ing sector is good for jobs, the economy and the security of our country.

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