NAM to House: How to Maintain U.S. Edge in AI, Semiconductors and More

Manufacturers support federal efforts to keep the country competitive in emerging and existing industries—but such efforts must support rather than hinder the manufacturing sector, the NAM told Congress recently.

On AI: The increased use of artificial intelligence in manufacturing calls for a legislative approach—such as the one detailed in the Open-Source AI Leadership Act—that “recogniz[es] that the development of, and wide access to, open source and open weight AI models contributes to innovation, technology choice and transparency,” the NAM told the House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade ahead of a recent hearing on maintaining American economic competitiveness.

Semiconductors: For the U.S. to keep its advantage in semiconductor innovation, production and use, manufacturers “need public policies that enable and facilitate domestic investments, unlock opportunities for economies of scale through full participation in global markets and leverage the collective advantages of America’s international allies,” the NAM continued.

• The NAM supports the current version of the Memory Chip Competitiveness Assessment Act because it supports “studying [the memory chip] marketplace” while not “[prejudicing] the study’s findings or recommendations toward artificially controlling and directing supply.”
• The NAM also recommends that the Chip EQUIP Act, which prohibits the use of Chinese semiconductor manufacturing equipment by recipients of federal CHIPS grants, clarify that it is not retroactive.

Automotive industry: Manufacturers are also in favor of the Automotive National and Economic Security Act, which would require the secretary of commerce “to conduct a study on the national and economic security risks posed by foreign adversaries to the automotive industry of the United States.”

• The study should be informed by three principles, the NAM said: a risk-based approach, take into account U.S. and allied nations’ technology development and production capacity gaps and not define foreign entities of concern differently from the way they are defined by the Department of Commerce.

Quantum: The NAM supports the current draft of the American Quantum Competitiveness Act “for recognizing the promise of quantum computing and the resulting need to promote U.S. commercial leadership in quantum technology.”

Robotics: The NAM supports the National Commission on Robotics Act “for seeking to direct the U.S. Department of Commerce to examine domestic and international developments in robotics … and the role of robotics in economic growth and national security.”

Corporate sustainability: Manufacturers are concerned about the European Union’s Corporate Sustainability Due Diligence Directive, which “would stretch the EU’s authority deep into U.S. manufacturers’ supply chains, including business conducted within the U.S. and around the world” and have an adverse effect on many small and medium-sized manufacturers.

• If the EU does not roll back the CSDDD, the NAM recommends that Congress acts to “shield U.S. companies from foreign court judgments obtained by European regulators, labor unions and nongovernmental organizations.”

The final word: “Manufacturers support federal efforts to strengthen U.S. leadership in these strategic technologies, provided they avoid retroactive obligations, unnecessary compliance burdens, artificial market distortions or overly broad national security approaches that could undermine competitiveness,” the NAM said.