Chip leaders urge proactive U.S. investment and faster permits to counter China at House hearing

U.S. chipmakers and technology executives urged lawmakers to pursue more aggressive, targeted support for the semiconductor sector, warning that China is outspending the United States in advanced manufacturing needed for artificial intelligence and other critical technologies.

The calls came at a hearing of the House Energy and Commerce Subcommittee on Commerce, Manufacturing and Trade, where witnesses said expanded, proactive investments under the CHIPS and Science Act and other measures would help close the gap. Industry representatives said the United States must build more domestic capacity across the entire supply chain, from fabrication plants to supporting infrastructure such as reliable electricity.

They pressed for streamlined permitting and scaling back regulations they said slow projects and erode competitiveness. “For decades, the U.S. has dominated the world stage of semiconductors,” Subcommittee Chair Rep. Gus Bilirakis, R-Fla., said in his opening statement.

“But that leadership is no longer guaranteed.” He noted U.S. semiconductor manufacturing capacity has declined by more than 25% since 1990 and said “adversaries, particularly China,” are seeking to disrupt supply chains. All of the industry witnesses pointed to AI as the leading driver of demand for cutting-edge chips.

“Leadership in semiconductors will determine leadership in AI,” said Jason Grebe, senior vice president of corporate planning at Intel. “If you do not build the chips, you do not control the future of AI.” Grebe said Intel has invested more than $100 billion in new and expanded facilities in Arizona, New Mexico, Oregon and Ohio, and committed about $93 billion in domestic research and development since 2020.

He acknowledged the Ohio project has been delayed to 2030, and some have noted the company continues to face manufacturing capacity issues that will not be easily fixed. The semiconductor sector underpins much of the modern economy, said Jason Oxman, president and CEO of the Information Technology Industry Council.

He said the U.S. semiconductor industry commands over 50% of the global market and generated $318 billion of revenue in 2025. According to Oxman, companies plan to invest about $1 trillion globally through 2030 in new fabrication plants, with much of that spending in China.

“China’s goal is to make its [semiconductor] technology dominant around the world, and its technology stack is increasingly competitive, especially in developing markets,” he said. “U.S. policymakers must enact the right policies to keep the U.S.

industry ahead.” Charles Wessner, a nonresident senior advisor in the Renewing American Innovation Program at the Center for Strategic and International Studies, urged lawmakers to embrace a robust industrial policy for semiconductors. “We’ve had industrial policy since about 1787,” he said, citing agriculture subsidies.

“We shouldn’t be afraid to pick winners. [The Chinese] intend to be the winners.” Wessner added that the U.S. should not try to entirely prevent China or other countries from accessing advanced U.S. semiconductor technologies.

He pointed to measures such as the MATCH Act, which closes loopholes that allow countries to obtain restricted technology through front companies, subsidiaries and allied countries, and noted that the Trump administration has placed conditions on Nvidia chip exports to China.

According to Wessner, such strategies can backfire. Witnesses said sustaining U.S. leadership will require predictable investment, faster project approvals and dependable power for fabs, with further steps under the CHIPS and Science Act among the tools available.

They told lawmakers that choices made now will shape whether the United States keeps pace with China in the years ahead.