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Investments in Semiconductor Chip Manufacturing Critical for Medtech Industry, Patient Health


AdvaMed marked the one year anniversary of the signing of the bipartisan CHIPS and Science Act and called on the Biden Administration to ensure, as implementation moves forward, that the medtech industry – including their need for mature and current chips – continues to be a priority.

The CHIPS and Science Act included $52 billion in investments and incentives to bolster domestic manufacturing of semiconductor chips, which AdvaMed has championed since the onset of the pandemic and in the face of the growing supply chain challenges facing the medtech industry. Despite being less than one percent of the overall semiconductor chip market, manufacturers of medical devices and diagnostics rely primarily on mature semiconductor chips for a vast array of technologies.

“The investments made by the CHIPS and Science Act in the manufacturing, research, and design of critical semiconductor chips has been critical for the medtech industry, which relies on mature chips to power the life-saving medical technologies that are critical to the health care system and delivery of patient care,” said Scott Whitaker, AdvaMed President and CEO. “A year later, these investments are being realized as new domestic manufacturing projects come online across the country. Now more than ever, as we continue to recover from the pandemic, it is critical that the medtech industry and the broader health care industry remain a top priority in domestic semiconductor manufacturing. We thank Secretary Raimondo and her team for their leadership and working with the medtech industry to address constraints that impact patient care.”

Last year, Deloitte  released the findings of a follow-up survey, commissioned by AdvaMed, of medical device manufacturers that found since the initial survey in July 2021, semiconductor disruptions continue across multiple chip types, and medtech companies are more pessimistic, facing depleted inventory, reduced manufacturing, and extended lead times. The study found that medtech companies are doing their best to react to ongoing pressures, including by increasing stocking levels, seeking alternative sources of supply, and utilizing alternative transportation options. However, 75 percent of respondents reported that their customers are turning to alternative treatment types, alternate products, and new strategies.

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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit

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