The Committee on Energy and Commerce is the oldest standing legislative committee (established 1795) in the U.S. House of Representatives and is vested with the broadest jurisdiction of any congressional authorizing committee. The Energy and Commerce Committee is at the forefront of all issues and policies powering America’s economy, including our global competitive edge in energy, technology, and health care. The committee is led by E&C Chairman Brett Guthrie (KY-02) and E&C Ranking Member Frank Pallone (NJ-06). The Subcommittee on Commerce, Manufacturing, and Trade is led by Chairman Gus Bilirakis (FL-12) and Ranking Member Jan Schakowsky (IL-09).
Good afternoon everyone and welcome to today's hearing examining the state of the semiconductor
ecosystem. From consumer devices and household items to AI applications, semiconductors or chips
are critical components to today's society and are essential to our national and economic security.
Semiconductors come in many forms, as you know, logic and memory, leading edge and legacy,
each serving distinct and indispensable functions across the economy. For decades,
the U.S. has dominated the world stage of semiconductors, leading in areas such as
global revenue, manufacturing capacity and semiconductor design, to name just a few.
But that leadership is no longer guaranteed, unfortunately. American semiconductor
manufacturing capacity has declined over 25 percent since 1990. Our adversaries, particularly
China, are actively seeking to unseat us from global leadership and disrupt our supply chains.
Through my work on the Energy and Commerce Committee and the Select Committee on China,
I've seen firsthand the strengths and strategic vulnerabilities of the U.S. semiconductor
ecosystem that defines our strategic competition with China. While the U.S. remains a leader in
semiconductor design, China is rapidly scaling its own capabilities, backed by significant state
subsidies, and maintains a dominant position in the rare earth materials critical to chip
production. At the same time, demand for semiconductors is being transformed by
artificial intelligence. AI applications are among the most critical use cases of semiconductors in
society. AI is the leading use case for semiconductors, and the AI surge is responsible
for over half of the total semiconductor revenue, potentially reaching $500 billion this year
and $1 trillion by 2030. AI is a critical driver of economic growth, as you know,
ceding global leadership or leaving our semiconductor supply chains vulnerable to
disruption at the hands of China could be catastrophic for U.S. leadership and AI.
The good news is that we have not ignored these emerging threats. Between congressional and
executive action, including actions in this committee, there's been an array of actions
to strengthen U.S. global semiconductor leadership. This hearing will also examine
those solutions and consider what other actions may be taken. Thank you again to all of our
witnesses for being here. We appreciate you so very much. Thanks for the time. I'm looking forward
to hearing your expertise and to the conversation ahead. So I'll yield back.
