OSU president: Buckeyes, Wolverines putting rivalries aside in name of 'Silicon Heartland'

Kristina M. Johnson is president of Ohio State University.

This month marks a major milestone that has the potential to preserve our global economic leadership, restore our working class, and protect our national security.

When President Joe Biden comes to Ohio today to break ground on Intel’s new semiconductor factory, he’ll be witnessing the rebirth of this country’s leadership of a vital industry that has its roots in U.S. ingenuity and dates back to the 1700s.

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It is far past time for American to take back its rightful mantle as a manufacturing leader in the semiconductor industry – one of the most important segments in the global economy – and the CHIPS and Science Act of 2022, signed into law by the president last month, is a significant step toward realizing that goal.

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But make no mistake: the more than $52 billion investment allocated by the CHIPS Act for domestic semiconductor manufacturing and research cannot happen in a vacuum.

Restoring America’s semiconductor industry requires an all-hands-on-deck approach that replaces competitiveness with cooperation and places partnerships above partisanship and divisions.

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That is exactly what we are doing here in the Heartland.

Through our Midwest Semiconductor Network, Ohio State is partnering with four-year universities and community colleges in Indiana, Michigan, and the Buckeye State. We’re putting rivalries and competition aside for the greater good – to benefit an industry that will make our region and our nation stronger, more competitive, and more secure.

As exciting as it will be to see shovels turn the first piles of dirt at Intel’s facility in Licking County, building new facilities  in and of itself is insufficient to spark a much-needed domestic semiconductor revival. 

The stakes are high

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No factory can succeed without skilled workforce to run it. American innovation cannot stay ahead of the global race without investments in academia. And no single university can provide the research and academic backbone to support this rapidly advancing industry. 

The stakes could hardly be higher.

Computer chips are tiny, but they are the brains of everything from pacemakers to planes to the handheld device you may be using to read this article.

As auto makers, defense contractors, information and communications technology companies, medical-device makers, and appliance manufacturers all vie for chips, the strain on the global supply chain has reached a breaking point. Semiconductor manufacturers around the globe simply cannot keep up with the demand.

The gap between supply and demand is a recipe for disaster — both economic and otherwise.

Supply chain shortages have contributed to delayed product deliveries and are a major driver of inflation. A recent Federal Reserve Bank of St. Louis report found manufacturing industries that depend on semiconductors saw prices increase at higher rates than those that do not.

A vibrant domestic semiconductor would shield American consumers from those economic pressures, while at the same time protecting us from geopolitical concerns. 

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While U.S. production accounted for 37% of the world's semiconductors in 1990, it has fallen to just 12% today, with the majority of advanced devices now fabricated by Taiwanese chip manufacturer TSMC and Korea’s Samsung. Taiwan and China are essential parts of the semiconductor supply chain, as are some industrial gases traditionally sourced from Ukraine. 

As a result, our dependence on these foreign suppliers leaves us at the mercy of international events like the war in Ukraine, mounting tension between North and South Korea, or escalation of the long-standing power struggle between China and Taiwan. Jumpstarting our own semiconductor industry will keep America competitive and reduce our dependence overseas.

We simply can’t compete unless we bring more talent to the semiconductor industry, and the benefits won’t be limited to that sector alone. According to a recent report, each person directly employed in the U.S. semiconductor industry supports an additional 5.7 jobs in the broader economy – either elsewhere in the supply chain or through worker wage spending.   

Workforce development leads to economic development for communities and more opportunities for families — but only if we make smart investments.

Just like in previous eras — where tentpole industries like auto manufacturing created a downstream demand for parts, people, and services — the burgeoning “Silicon Heartland” will create a new ecosystem that benefits generations of present and future Americans.

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During WW II, the Midwest was one of the most productive regions in the nation and even the world, contributing both alimentary and manufactured products that sustained the U.S. and Allied war effort. We’re poised to reprise that role in the modern era, and the Midwest Semiconductor Network will collectively provide the talent and intellectual foundation that makes it possible.

Let’s face it: If something is important enough for Buckeyes and Wolverines to come together, it must be a very big deal.

Kristina M. Johnson is president of Ohio State University.