[Congressional Record Volume 166, Number 211 (Monday, December 14, 2020)]
[Senate]
[Pages S7456-S7457]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                   National Defense Authorization Act

  Mr. President, on another topic, last Friday, another important thing 
happened--the Senate passed the National Defense Authorization Act with 
broad bipartisan support and sent it to the President for his 
signature. This marks the 60th year in a row that we have completed the 
defense spending bill, and that is as it should be. Our national 
security is the No. 1 priority here in Washington, DC, and for our 
entire Nation.
  Texas servicemembers will receive higher salaries and stronger 
support for their families because of this legislation. That includes 
assistance for military spouses whose careers involve relicensing, and 
it includes high-quality childcare on military bases. This legislation 
will also bring some serious updates and improvements to Texas military 
bases. Joint Base San Antonio, Joint Bases Fort Worth and Fort Hood, 
and the Pantex Plant in Amarillo will all receive additional funding 
for updates and facilities to improve their capabilities and mission 
readiness.

[[Page S7457]]

  Given the uncertain state of today's world, preserving our military 
readiness has never been more important. Russia is growing more 
aggressive in its efforts to disrupt the global order. North Korea 
continues to provoke the United States and our allies with its nuclear 
aspirations. Iran's hostile and unpredictable actions threaten 
democracies around the world, not just in the Middle East. China has 
become increasingly powerful and more belligerent than ever. The 
Defense Authorization Act is how we prepare to counter these growing 
threats at every corner of the globe and improve our national security 
across the board. We do that through the time-honored notion of peace 
through strength. The best way to avoid a war is for America to remain 
strong.
  I am incredibly proud that this legislation includes language from a 
bill I introduced with Senators Warner, Cotton, and Schumer--a 
bipartisan bill. The goal of this legislation is straightforward--to 
bring semiconductor manufacturing back to the United States. Since 
2000, the United States has dropped from producing roughly a quarter of 
the world's semiconductors now down to about 12 percent, and the 
semiconductors that make up your iPhone or that go into an F-35 are 
sole-sourced from a Taiwan semiconductor manufacturing company, 
obviously located overseas.
  If we have learned one thing from this virus, it is of the 
vulnerability of our supply chains, and it doesn't take a lot of 
imagination to understand, with the threat to our economy and the 
threat to our national security, that the sole-source supply chain 
should be disrupted. There are the obvious economic consequences. Why 
buy these chips from other countries when we could be making them 
ourselves? We could boost an entire industry, including high-paying 
jobs right here in the United States. As I said, that is only part of 
the equation, because semiconductor manufacturing isn't just about the 
economy and jobs; it is about national security. Chips aren't just in 
televisions, dishwashers, and consumer electronics; they are a vital 
part of our cell towers, missile defense systems, and other critical 
infrastructure.
  If you need an example of just how important it is to have a reliable 
supply of our most crucial devices, just look at the PPE shortage 
during the COVID-19 crisis. China has long been a supplier of masks, 
gloves, gowns, and other personal protective equipment used primarily 
by our healthcare workers. For a long time, that wasn't really a 
problem, but then COVID-19 showed that it was a problem.
  By the time the virus began to move across the United States, China 
had been battling it for months. So when it came time for American 
hospitals and clinics and healthcare providers to beef up their 
supplies of PPE, their supplies had already been depleted. Healthcare 
workers, you will recall, were reusing masks throughout an entire shift 
in order to conserve supplies, and hospitals were pleading with the 
general public to donate any unused personal protective equipment to 
help keep healthcare workers safe. We didn't reach that point because 
of a lack of preparation by hospitals but because of our reliance on 
vulnerable supply chains--notably, out of China--to produce that gear.
  Now imagine a supply chain breakdown happening for every industry 
that relies on semiconductors. Everything from healthcare, to 
telecommunications, to agriculture, to manufacturing would be paralyzed 
by a disruption of that supply chain. So one thing this virus has 
taught us, among other things, is to eliminate those supply chain 
vulnerabilities, and it is a clear signal that we need to take action 
to secure other critical supply chains beyond just semiconductors.
  The inclusion of this provision in the NDAA was a strong start. We 
had a great vote of 96 Senators voting for the inclusion of this 
provision in the National Defense Authorization Act--strong bipartisan 
support. This provision in the NDAA will help restore American 
leadership in semiconductor manufacturing by creating a Federal 
incentive program through the Department of Commerce to encourage chip 
manufacturing here. It will stimulate domestic advanced semiconductor 
manufacturing and boost both our national security and global 
competitiveness. It will enable us to bring manufacturing jobs back to 
American soil so we can reduce our reliance on China and other foreign 
countries and strengthen the supply chains of our most critical 
industries.
  Now comes the hard part--we have to pay for it. On Friday afternoon, 
I spoke with Secretary Pompeo and Secretary Ross about this legislation 
from, as I said, both national security and economic perspectives. Last 
month, the Commerce Department sent a report to the Committee on 
Appropriations detailing its plans to implement a semiconductor 
manufacturing incentive program. For everything from the authorities 
that will be used to establish the program to the coordination with 
industry leaders, the Commerce Department is ready to hit the ground 
running. Both the Secretary of State and the Secretary of Commerce 
agree--Congress must act soon and back these programs with funding.
  It is estimated that China will spend $250 billion on semiconductor 
manufacturing in the coming years. If left unmatched, it will control 
80 percent of the semiconductor manufacturing market. If that happens, 
the United States will not be able to recover lost ground, which is why 
it is critical that we act now. Thankfully, with the help of private 
industry here in the United States, we can do more with less. We can 
stop the slide of manufacturing power to China if we put even 10 
percent of what China is spending toward this essential element of our 
national security and our economic competitiveness.
  The Senate passed this amendment over the summer with overwhelming 
support. I hope my colleagues on both sides will join me in continuing 
to fight to secure funding for this bipartisan priority, which will 
bring manufacturing jobs back to the United States and close a glaring 
and dangerous national security gap.
  I yield the floor.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER (Ms. Ernst). The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. GRASSLEY. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.