Today, economies are as reliant on microchips as an input as they are on oil or minerals. The boom in AI has only grown the number of semiconductors needed for our national economy, and the growth shows no signs of slowing. However, even as the criticality of microchips for our economy becomes more pronounced, our supply of them is being increasingly called into question. The pandemic exposed vulnerabilities in the global semiconductor supply chain, and rising geopolitical tensions have led to anxieties over potential disruptions in the event of a conflict.
In light of these developments, efforts have been made to reshore U.S. semiconductor manufacturing, with players in the Mountain West poised to play key roles in both research and manufacturing. This panel examined the state of the microchip industry in the Mountain West, and what the future might hold for this critical industry, both in Idaho and nationwide.
“The good and bad of our market is that we are small, and we know everybody in the ecosystem. Typically, you can have a conversation where all the expertise and all the authority and all the political interests are served in one meeting.”
Mr. Roger Brown
Director of Economic Development, Boise State University
Idaho has emerged as a semiconductor hub, for businesses both large and small. In spite of intense competition in a global semiconductor market, Idaho and the broader Mountain West have grown a significant microchip industry composed of homegrown businesses. Global semiconductor firm Micron has been joined by a host of smaller companies and manufacturers, helping to create an ecosystem, rather than just a single company. Investment in research and education, particularly at Boise State University and Idaho National Laboratory, has expanded the scope of the work being done in Idaho to include cutting-edge research and development.
“And as we look at the other ingredients of innovation across the region, and especially within this valley, there is really those three things: land, workforce, and utilities.”
Mr. Jeff Binford
Senior Director of U.S. Expansion Planning,
Micron Technology
The success of Micron, and the impact that has had on the local community, remains a pillar of the industry in the Mountain West. Senior Director of U.S. Expansion Planning for Micron Technology Mr. Jeff Binford noted that over 57,000 people are employed by the company, and Micron has made a huge and successful efforts to develop and recruit a local workforce. Binford highlighted the skilled workforce that exists in Idaho, the available land (including ease of related permitting), and the robustness of utilities in the state as the key ingredients allowing Micron to grow into the global company it is today
“We are still using the same basic [educational] process we did when our grandparents and great-grandparents were riding around in horse and buggy. If we want to change that system, then why don't we re-engineer the whole process?”
The Hon. Dave Lent
Idaho State Senator
However, the Mountain West’s microchip ecosystem would not be complete without a host of smaller companies. American Semiconductor President and CEO Mr. Doug Hackler ensured attendees that the role of smaller players was critical. He described a divide in how to consider the role of small business in an industry tilted towards industrial titans: On one hand, some believe that the role of smaller companies is to provide support to the major players like Micron, serving as a part of their supply chain. However, Hackler put forward the alternative theory that the more important role of smaller businesses in the microchip industry was to serve as the incubator, and to take risks on new technologies that less nimble large players may not. In this way, the smaller firms may serve as the “next generation” of the microchip industry; Hackler reminded the audience that Micron itself had humble origins in the basement of a Boise dentist’s office.
Support needs to be offered to firms of all sizes. As businesses both large and small move to take advantage of the renewed interest in domestic semiconductor manufacturing, they will need to be offered robust support. Senior Advisor for Policy at the CHIPS Program Office in the U.S. Department of Commerce Ms. Amanda Mays, described how collaboration between industry and government at all levels is crucial for the long-term sustainability of microchip ecosystems. Further, the CHIPS and Science Act is the largest federal investment in microchip manufacturing capacity in a generation; it is critical that these funds are available for firms of all sizes. This will not only ensure that the critical support companies for the incredibly complex microchip industry are able to expand and meet growing demand, but also that smaller independent manufacturers are given fair access to resources as large players, keeping the playing field level and encouraging start-ups.
“How are we utilizing available programs to invest in the public infrastructure and the public sector needs so projects are successful? Connecting those dots is something that we're focused on from the federal side, not just cutting a check to a company and saying, "Good luck. The region's going to be successful, right?”
Ms. Amanda Mays
Senior Advisor for Policy, CHIPS Program Office
U.S. Department of Commerce
Beyond monetary support, a large expansion of semiconductor manufacturing capacity will necessitate growth in supporting infrastructure. More power will be required, as well as water, transportation connections, and internet access. Attention is needed on how to provide these services to semiconductor manufacturers without overtaxing local infrastructure or putting brakes on their expansion.
A successful semiconductor industry relies on a robust semiconductor workforce, and that means bringing more people into manufacturing. However, getting students involved in manufacturing today is difficult. Hackler suggested that part of the reason that microchip manufacturing declined in the United States in the first place was a lack of cultural emphasis on manufacturing as a valuable value-added job like software or IP development. Outdated notions about manufacturing as a lower-level industry or career have hampered the United States’ efforts to re-shore semiconductor manufacturing, and this must be overcome.
“What things can I do to help enable a rural community to have that exposure so that they are at least aware of STEM? It does not have to be semiconductors. If they have the STEM exposure, the framework for being able to take their innovative ideas, their innovative thought processes, and actually do something with them, that's one of the big things I would like to see moving for our region forward.”
Mr. Rick Murdock
Executive Director, Institute for Microelectronics Education & Research, Boise State University
Bringing rural communities into STEM is difficult. As Executive Director of the Institute for Microelectronics Education & Research at Boise State University Dr. Dan Lamborn noted, people living in rural communities are often among the most innovative members of society, solving problems without the benefits of the significant resources and infrastructure that exist in more urban areas. Bringing them into the STEM economy would not only lift their communities, but also inject a new set of desperately needed innovators into the workforce. He highlighted the “Semiconductors for All” program, designed to help instill an interest in STEM subjects in students at an early age to help create pathways into future STEM careers. More talent and interest development programs like these can help close the gap between urban and rural communities and ensure more people are benefiting from and contributing to the innovation economy.
