As Senate Passes $280 Billion Measure to Boost U.S. Chip Production, Medtech Industry Applauds
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The U.S. medical device industry welcomed today’s Senate vote to allocate $280 billion over several years to increase domestic computer chip production, including a special fund to ensure computer chip production. older generation used in many medical devices.
The Senate on Wednesday passed CHIPS (Creating Helpful Incentives to Produce Semiconductors) and the Science Act, which would provide more than $52 billion to U.S. semiconductor manufacturing over the next five years. Of that total, $50 billion would go to semiconductor manufacturing, while $2 billion is specifically for the production of so-called legacy chips that are often used in medical devices.
The bill provides an additional $100 billion in funding for scientific research, much of which will be disbursed by the National Science Foundation.
The bill “will ultimately lead to improvements in patient care and help strengthen America’s position as a leader in medical technology innovation,” said Mark, CEO of the Medical Device Manufacturers Association. Leahey said in an emailed statement.
Medical technology companies have grappled with a global chip shortage since the coronavirus pandemic began in 2020. Limited supply has increased costs, forcing companies to spot market to buy electronic components and make it difficult for patients to access certain critical devices.
“Any opportunity to bolster U.S. chip semiconductor manufacturing is significant, given the supply chain challenges facing all industries – especially the medtech industry as it strives to meet a historically high demand for life-changing connected devices,” ResMed CEO Mick Farrell wrote in an email. statement.
ResMed, which has struggled to secure enough semiconductors to meet demand for sleep apnea machines following a massive recall of competing machines by Philips, also urged chip vendors to increase their allocation to medical device companies. MedTech Europe, an industry lobby group, recently made a similar request to European regulators.
The Senate bill passed with a vote of 64 to 33 and will now go to the House, where it enjoys bipartisan support.
In a statement Wednesday, President Joe Biden urged the House to “quickly” pass the bill, which he says will create more resilient supply chains.