AdvaMed Commends Administration Investment in Domestic Semiconductor Chip Manufacturing
WASHINGTON – Advamed President and CEO Scott Whitaker released a statement following the Biden Administration’s CHIPS investment announcement in Oregon and Colorado:
“The investments being made in our domestic semiconductor chip manufacturing base under the CHIPS and Science Act are critical for the medtech industry and the millions of patients who rely on the life-saving devices the medtech industry develops. The reality is, our health care system and the delivery of patient care depends on a stable supply of mature semiconductor chips, and any disruption could be the difference between life and death for an untold number of patients.
“The announcement this week on the proposed CHIPS investments in Oregon and Colorado is a welcome sign that we are on the right trajectory to prevent future semiconductor supply strains laid bare by the pandemic. We look forward to working with the administration and chips manufactures to ensure the health care industry, and especially the medtech sector, remain a top priority.”
The CHIPS and Science Act included $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 primarily on mature semiconductor chips for a vast array of technologies.
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.