Arlington, Virginia, June 15, 2022 — America’s Frontier Fund Chief Executive Officer, Gilman Louie, today testified before the Senate Finance Subcommittee on International Trade, Customs, and Global Competitiveness regarding supply chain resiliency.
“Our supply chains are vulnerable. We are losing our lead in technologies. And our future is at risk,” said America’s Frontier Fund CEO Gilman Louie. “We need all Americans engaged in this competition. We need technologists, philanthropists, investors, and hardworking Americans from Wall Street to Silicon Valley and the entire heartland in between. Everyone. This is the U.S. government’s moment to do what Americans do best: that’s to lead.”
Louie identified key U.S. vulnerabilities in the great-power competition, including in semiconductor production.
“Samsung’s fabs in South Korea are within North Korean artillery and missile range. And TSMC produces the vast majority of cutting-edge chips within 110 miles from China,” said Louie.
Louie outlined three market failures that have led to America’s brittle global supply chain: 1) underinvestment in foundational technologies that has stifled innovation and deterred talent in key sectors; 2) artificially attractive offshore investment environments created by countries in East Asia; and 3) high barriers to entry for U.S. domestic advanced manufacturing.
“Fortunately, there are still reasons for optimism. Threats create an opportunity for revitalization,” said Louie.
Louie introduced a framework with four pillars to secure U.S. technology leadership:
Reimagine U.S. manufacturing capabilities, including using public funding as a signal to unlock the $45 trillion U.S. capital markets and expanding talent pools in STEM and trade industries.
Invest in promising technology hubs across America, especially outside the five coastal cities that have dominated 90% of innovation jobs over the last decade.
Disclose the risk of investing in authoritarian nations, including by adding “d” for “Democracy” to Wall Street’s Environmental, Social, and Governance criteria to help identify the material business risks created by investing in those autocratic nations.
Deepen tech engagement with allies and partners by prioritizing “friend-shoring” and creating new pathways through the Quad and other coalitions for investing jointly in emerging technologies.
A video of Louie’s remarks can be found here, and a transcript of Louie’s statement submitted in full to the committee is available here.