AdvaMed Applauds Final Passage of CHIPS Act
Bipartisan Bill Includes Critical Investments for Domestic Semiconductor Manufacturing
WASHINGTON – Today, the Advanced Medical Technology Association (AdvaMed), the world’s largest trade association representing medical device manufacturers, applauded the United States House of Representatives and Senate for coming together to pass the bipartisan CHIPS Act.
The legislation includes $52 billion in investments and incentives to bolster domestic manufacturing of semiconductor chips, which AdvaMed has championed since the onset of the pandemic and in the face of the growing supply chain challenges facing the medtech industry. Despite being less than one percent of the overall semiconductor chip market, manufacturers of medical devices and diagnostics rely on semiconductor chips for a vast array of technologies.
“On behalf of our members and the patients we serve, I want to thank Congress for making a critical investment in the manufacturing, research, and design of these critical technologies,” said Scott Whitaker, AdvaMed President and CEO. “The pandemic has created numerous supply chain challenges for medtech companies who are struggling to access the mature and advanced chips they need to continue manufacturing lifesaving medical technologies. The CHIPS Act addresses long-term issues for our members and the patients they serve by increasing the domestic industrial base for chips and enhancing access to the kinds of chips critical to the health care system and delivery of patient care.”
Additionally, AdvaMed led efforts to secure $20 billion for the National Science Foundation Directorate for Technology, Innovation, and Partnerships, a first-of-its-kind group that establishes medical technology as a top initial strategic priority for investment. These additional resources will be available to the medtech industry in the form of grants and incentives for domestic device R&D, manufacturing, and STEM education.
Deloitte released the findings of a follow-up survey, commissioned by AdvaMed, of medical device manufacturers that found since the initial survey in July 2021, semiconductor disruptions continue across multiple chip types, and medtech companies are more pessimistic, facing depleted inventory, reduced manufacturing, and extended lead times. The study found that medtech companies are doing their best to react to ongoing pressures, including by increasing stocking levels, seeking alternative sources of supply, and utilizing alternative transportation options. However, 75 percent of respondents reported that their customers are turning to alternative treatment types, alternate products, and new strategies.
In the latest episode of the Medtech POV Podcast, Scott Whitaker sat down with Mick Farrell, ResMed CEO and member of the AdvaMed Board, to discuss the current semiconductor chip shortage and the importance of the components for medical devices.