2/27 Global Business News Panel (Online) Q&A and Talking Points
Speaking session: No press or media, but live streaming and recorded.
Date/Time/Location: 2/1 arrive Moderator: Ed Cohen
Speaker: Rebecca Peters, Director of Public Policy, Semiconductor Policy
Audience:
lawfirms working in the global mobility space
DC Beltway-based corp managers of Talent Mobility, corporate client HR/People Leaders and corporate
Total Rewards, tax
some gov agency HR leaders
some Embassy representatives, especially involved with immigration
potential employment law consultants
relocation/talent mobility company execs from DC Beltway
Recommended Q &A
(1) Rebecca, great to have you. How did you get involved in the semiconductor industry?
Well first, thank you, Ed, for the opportunity to be a part of the conference and the conversation today.
To answer your question, I actually got involved in the semiconductor industry through a colleague of mine that worked with
me for decades in the immigration reform space, Gene Irisari who currently heads up Samsung semiconductor’s
public policy team here in DC. Gene brought me onboard at Samsung about 2.5 years ago to head up our
semiconductor workforce, immigration, R&D and IP public policy portfolios.
And I have to say it has been great coming from the immigration reform space and working in the semiconductor
space where in the past two years we’ve been able to move legislation forward through Congress and successfully
enact the CHIPS and Science Act.
And to maybe put this more in context -Samsung cares about the CHIPS Act b/c as a company we are committed to
expanding our semiconductor manufacturing footprint here in the U.S. with our new Taylor Texas project.
And for those that may not know, Samsung actually was the first foreign HQ’d company to produce semiconductor
chips onshore in the United States at our Austin TX site and we continue to lead the way producing chips in the
U.S. since 1996. So we are extremely excited to be expanding our chip facilities to Taylor TX and we are happy to
report that last week we issued our 2023 Economic Impact Report —a comprehensive third-party report that
highlights Samsung had $26.8 billion in economic contribution and impact in Central Texas generated through
operations of the Austin fab and the construction of the future manufacturing facility in Taylor. In fact, our Austin
facility created over (5,322) direct jobs and over an additional (12,344) indirect jobs in Austin and 18,161
direct and indirect construction jobs in Taylor, TX.
(2) So, you played a role in passing the CHIPS and Science Act. How has its implementation been going so far?
What progress has been made?
So – Yes- in July and August 2022 the industry passed and enacted the CHIPS and Science Act. And as of the fall of
2022 the Department of Commerce and the Department of Treasury had been leading efforts to implement the
law. And implementation really breaks down into three key items that we are in the middle of right now:
(1) Implementation of a tax credit (25% of an eligible taxpayer’s qualified investment in a facility to manufacture
chips or equipment) if the qualified property began construction after enactment of CHIPS (August 9 2022) and
was placed in service after 12/31/22.
(2) Implementation of $39 billion dollars for Manufacturing Incentives Program grants going to companies and
organizations applying for CHIPS money because they are either are building, expanding or modernizing
semiconductor facilities/fabs, assembly, testing or packaging or R&D facilities
(3) Implementation of $13 billion to provide grants to the National Semiconductor Technology Center (National
Center for the Advancement of Semiconductor Technology (Natcast)), Advanced Packaging Program, along with
some other programs that are unfolding at the DOD, NIST and NSF. (NIST Manufacturing USA Institute, the DOD
Microelectronic Commons and the National Science Foundation’s efforts around R&D and workforce development
initiatives).
And what is key to understand is that most of the larger semiconductor companies like Samsung, Intel, Micron,
TSMC, Texas Instruments have already applied for or are in the process of applying for grants to the Commerce
department and we are watching the 48D regs at Treasury which will dictate the investment tax credit and what
companies can claim on filing taxes. So that is where we are in the implementation of the law, but industry is still
waiting on guidance to implement the Natcast and advanced packaging program and guidance to apply for those
grants.
And last but least, many of us in the industry are also working with the NSF on the best use of their outstanding
$175M for workforce development grant money. So a lot of moving parts and a lot of opportunities here in the
U.S for employers, academia and non-profits.
(3) And, why does global mobility/immigration matters in all this?
So one of Samsung’s key focal points as we implement the CHIPS Act is to work with the government and industry
and academia to grow America’s STEM workforce and our US worker pipeline because no matter what the
financial incentive happens to be that we might receive from the USG, we will only be successful in manufacturing
semiconductors in the US if we have the right talent and a workforce to do it, and immigration solutions are a part
of how we get there.
In particular, I chair the Semiconductor Industry Association (SIA) workforce committee and last July we worked
with Oxford Economics to issue a report (new report) highlighting in general the shortfall of 1.4 million STEM
workers facing the U.S. economy and a gap of nearly 70K of those are semiconductor technicians, engineers and
computer scientists over the next 5 years. To meet this challenge, the report recommends efforts to strengthen
regional programs to train technicians, grow the domestic pipeline of STEM graduates, and retain and attract more
global STEM advanced degree talent. And we released this report at a conference we hosted that many officials
from the USG attended, from the DOC to NSF to the DOD. And while I think we will be able to meet our technician
needs through growing the US worker pipeline we know that as far as our engineers are concerned over 50% or
more are graduating with STEM advanced degrees out of our US universities are FNs.
(4) Let’s talk about the political landscape we face in Washington right now?
Funding is in front of Congress with 3/1 and 3/8 deadlines. Congress reached an agreement over a month
ago on a short term funding agreements (CR) to avoid a partial shutdown – funding the USG at current levels
through March 1 and March 8 (DHS/DOS). Right now we know Speaker Johnson is trying to move the four full
appropriations bills forward b/f this Friday’s 3/1 deadline and if those pass it could be possible the other 8
appropriations bills move forward before the 3/8 deadline. That said it is very possible this will not give the
Senate enough time to move these bills forward on their calendar and a short term CR to get the full appropriations bills done might be necessary.
There is a strong desire not to do another long-term CR or to
have a shutdown, but a short shutdown is always possible. Either way we are told the State of the Union
Address will process on 3/7 whether the government is funded or not.
Shutdown.
(Ed let me know if you want to discuss implications for immigration if there is a shutdown)
House is set to vote for Expanded Pell Grants on Suspension this week. As early as February 28, the House will
vote on HR 6585, the Bipartisan Workforce Pell Act. We are interested in the legislation as it intends to remove
barriers to entry into semiconductor workforce training programs through Pell grants, loan repayment, and other
financial incentives that would benefit semiconductor technicians.
Under current law, Federal Pell Grants are limited to funding college-level education, and are usually awarded only
to undergraduate students who display exceptional financial need and have not earned a bachelor’s, graduate, or
professional degree. Congress is currently considering a reform to extend Pell eligibility to students enrolled in a
short-term training program that meet specific parameters. Under this proposal, individuals who may have been
unable to enter a short term-training program due to cost would now be able to utilize Pell grants to complete a
program that could lead to a job in the semiconductor industry. Given the enormous need in the semiconductor
industry – and other similarly-situated sectors – for technicians and other positions that don’t require a 4-year
degree, the availability of substantial funding for high-quality, job-oriented, short-term training will be essential to
filling the pipeline with a trained workforce. Samsung is supporting this legislation, and if it passes in the House it
would need to find a path forward in the Senate with the assistance of the Senate HELP committee.
Border deal. So the border deal is not moving forward and the reason for that is it is not acceptable to House
leadership unless HR 2 -which is the border bill the House R leaders support -is part of the bill and that did not
happen. So this deal is at a standstill. That said subconversations on the border will continue.
Impeachment of Mayorkas. While the House impeached DHS Secretary Mayorkas he will remain in office b/c it is
highly unlikely he will be charged in the Democratic-controlled Senate. It’s important to remember that Democrats
can essentially dictate this entire process as long as they stick together. All of the aforementioned votes would be
at a simple-majority threshold, so Democrats can bypass a trial entirely.
Latest on Tax. Also important to the global mobility crowd – there has been some activity surrounding a tax
extender package which has passed in the House and is now before the Senate for consideration. Currently,
the measure includes Domestic R&D expensing, extending 100% bonus deprication, expansions of the existing
child tax credit (allow parents to use earnings in either of the last two years to claim CTC-so can claim a tax
credit in both years even if only working in one year) to give a few examples. We know Leader Schumer in the
Senate is supportive and will do his best to find a path forward for the bill, but the bill would likely need to ride
on must move funding bills that are set to expire in March. WH also supports the bill.
Look Ahead to a Presidential Election Year. So we just had the Iowa Caucus and New Hampshire primary and as
predicted, former-President Trump won the vote.
As we look ahead to the election I think it is important to keep a handful of realities in mind:
(1) it will be challenging for any legislation outside of must move legislation (like funding) to get legs
beyond the Easter holiday which is when the Presidential election will really start to heat up.
(2) it will be important for business to put forward key marker bill concepts this Congress, for instance as
the year progresses we will be working on bills that help us grow the US STEM workforce
(3) must continue to look to the Administration and the agencies for immigration solutions for instance
like the DOS’s Visa Revalidation Pilot program
(4) And I think it goes without saying, but we are likely to see very different implications for workforce
and immigration if we have a Biden or Trump administration next year.
While the Biden administration has been very pro-labor union and pro-worker, the Trump administration’s DOL
should be much more pro-employer. However, while the Biden administration has been very helpful
on selective immigration public policies keep in mind we will expect a Trump administration to
restrict immigration – in particular employers should expect any progress we have made under the
Biden administration to be rolled back, policies restricting H-1B visas and employment-based
immigrants will be a focus. We’d likely have higher NIV denial rates at the agency and other policies,
like as banning the entry of immigrants and temporary visa holders under 212(f) authority. So
companies will need contingency plans focused on moving talent and resources outside the United
States should that happen.
One key item to watch this year is – The Supreme Court is expected to rule this term on Relentless,
Inc. v. Department of Commerce and Loper Bright Enterprises v. Raimondo. Both cases involve
Chevron deference, which has granted significant leeway to federal agency interpretations of the law.
Ironically, if Trump-appointed justices on the Supreme Court vote to limit Chevron deference, it could
provide employers greater legal recourse against highly restrictive immigration regulations drafted by
Trump officials in a second term.
(5) And I think it is important to keep in mind that a lot of what is driving immigration policies in
Washington right now is focused on meeting the needs of critical and emerging technologies, like
semiconductor industry and AI, as well as national security –like the CHIPS Act – an idea that remember
originated under Trump. And I think these will continue to be impt drivers of policy as we look ahead.
(5) What else can global mobility/immigration stakeholders can expect in the first half of this year?
Well some of the key items I am watching in the immigration and workforce space – and this is no means an
extensive list, include:
The DOS has begun implementing its 20,000 H-1B Visa Revalidation Pilot Program (Pilot) that Samsung and the
Compete America coalition made an advocacy push for in recent years. As I am sure the audience is aware the Pilot
just went into effect January 29 and will run to April 1, 2024. The DOS bgean accepting online applications for this
pilot beginning on January 29, 2024. Each week, the DOS will release approximately 2,000 application slots for
those whose most recent H-1B visa was issued by Mission Canada and approximately 2,000 application slots for
those whose most recent H-1B visa was issued by Mission India. Once the weekly limits are reached for each
mission the online application portal will be locked until the next date makes the next group available. The
application process will close when all slots are filled, or on April 1, 2024, whichever is sooner. We are hopeful that
if this pilot is successful – we can begin advocating for its expansion to include dependents of H-1Bs who are
eligible for the pilot. The pilot targets those seeking to renew an H-1B visa during the pilot phase between January
29, 2024, and April 1, 2024 (H-4 dependents are excluded from the pilot)
Are renewing a prior H-1B visa issued by Mission Canada with an issuance date from January 1,
2020, through April 1, 2023, or by Mission India with an issuance date from February 1, 2021,
through September 30, 2021;
Are not subject to a nonimmigrant visa issuance (reciprocity) fee;
Are eligible for an in-person interview waiver;
Have submitted ten fingerprints to DOS in connection with the prior visa application.
See Question 27 here;
Prior visa doesn’t include a “clearance received” annotation;
Do not have a visa ineligibility that would require a waiver prior to issuance;
Have an approved and unexpired H-1B petition, were most recently admitted to the U.S. in H-1B
status, and are maintaining H-1B status in the United States;
Period of authorized admission in H-1B status has not expired; and
Intend to reenter the U.S. in H-1B status after a temporary period abroad.
Final Fee Rule Announced . USCIS Announced a final fee rule that will take effect on 4/1 (so won’t apply to this
year’s H-1B cap). The agency has not raised fees in 7 years and 96% of USCIS funding come from fee-funding, as
the agency still has a backlog of over 4M cases. They considered 5400 comments and the final rule removed
$727M in costs from the NPRM. That said, there are very large increases in fees for employers – for example –
employer will pay 70% more for beneficiaries on H-1B petitions, 201% more for employees on L-1 petitions and
129% more for individuals on O-1 petitions. USCIS estimates it will see an additional $1.14 billion in revenue, with
much of that increase falling on U.S. employers. So there are likely to be lawsuits challenging the rule and the
methodology of how the agency sets fee increases on ability to pay. Employers will be disappointed if we don’t see
processing times improve with this level of fee increase. (Two important items to be aware of is the agency will
provide 25% discounts for small business and non-profits and that the agency is changing premium processing time
from 15 calendar days to 15 business days).
Waiting on a Final H-1B Modernization Rule but USCIS Announced a final H-1B Registration Rule. Registration
USCIS Announced it will publish a final H-1B Registration rule tomorrow that will be effective on March 4 and in
effect b/f this year’s H-1B registration opens on March 6. The new approach will be “beneficiary-centered” and
aims to discourage employers from sending in multiple registrations for the same individual without intending in
advance to make legitimate job offers. USCIS also announced they intend to publish a separate final rule to address
the many other provisions from the H-1B modernization rule, but did not give a specific date.
What else is key to watch when a final rule is issued:
The Codification of the H-1B Specialty Occupation Definition. I think we need to be prepared for
potentially more RFEs when it concerns a petition that involves a general degree that does not have a
direct relationship between the degree and the job duties like an EE for a chemical engineer or MBA as
the degree for a Marketing Sales Director position. It is not the specific degree for the specific job duty
like a degree in EE for an EE.
Codifying DHS authority to conduct site visits, could result in an uptick in site visits to employee homes.
They are codifying site visits to the employee’s home or third-party worksites. This would allow employee
beneficiaries to be interviewed by FDNS officers without both the employer and counsel.
Biden AI Executive Order DOL Request for Information. The Department of Labor (DOL) has pushed back the EO
on AI’s RFI on Schedule A’s submission deadline from February 22 to May 13. The RFI proposes giving industry a
chance to add jobs to a DOL’s list to fast track green card processing by exempting specific jobs from the
requirement of labor certification. AFL-CIO’s request means there is little chance industry’s request for a notice of
proposed rulemaking (NPRM) will take effect and ultimately have a chance to help industry before the election.
DSPA is contributing to working groups on various RFIs at coalitions and trades associations including Compete
America, HRPA, SIA and Technet.
Independent Contractor Rule The Department of Labor released its final independent contractor rule which will
make it more difficult to classify workers as contractors. The rule will take effect on March 11, 2024. The final
rule’s six-factor test defining the relationship between a worker and employer lacks clarity regarding who qualifies
as an independent contractor creating uncertainty for employers acting in good faith to comply. The definition
matters because it triggers coverage under federal wage and hour law, as the Federal Labor Standards Act (FLSA)
that sets federal rules for minimum wages and overtime and requires covered employers to keep certain records.
Trade associations submitted comments in opposition to the proposed rule, arguing the rule was overly broad and
vague and the US Chamber filed a lawsuit. The US Chamber may choose to litigate , but litigation will only happen
after the effective date. So employers should start look at their contingent workforces and consider whether to
reclassify any contractors to full-time employees or reevaluate the use of any contingent workers. Not doing so
could result in significant legal and litigation expense under the Federal Labor Standards Act (FLSA), state and
federal employment laws. Coordinating with your legal teams to audit the extent of contingent worker usage and
its necessity and reviewing classifications to ensure they will comply with the new rule as well as reviewing
contracts with staffing providers to clarify degrees of control within the relationship are good next steps.
NLRB’s Joint Employer Liability Rule Effective Date is Delayed until March 11. A federal judge in Texas, Judge J.
Campbell Barker, pushed back the effective date for the National Labor Relations Board’s rule on joint employer
liability to at least March 11. The delay comes as part of the challenge to the rule brought by the US Chamber
along with a coalition of other employer groups. The controversial NLRB rule was set to take effect yesterday -Feb.
26. Under the NLRB’s new rule, employers could be considered “joint employers”, and therefore liable for another
employer’s unfair labor practice violations, or forced to bargain with the union of another employer’s employees,
based merely on “indirect” or potential control of the employees of another employer. It replaced a regulation
issued by the NLRB during the Trump era that set the standard for joint employment at “direct and immediate”
control over terms and conditions of employment. The delay is seen as the judge creating more time during which
he can finish his opinion on the merits of the challenge, meaning a decision is likely to be issued before March 11.
(A coalition of business groups sued the NLRB in a federal district court in Texas, arguing the rule is overly broad.
Simultaneously, the Service Employees International Union filed suit, arguing that the rule does not go far enough.
Since two lawsuits were filed in different jurisdictions it may slow down the legal challenges. The courts may also
choose to move both suits to a single jurisdiction, which could have a major influence on the fate of the rule.
Additionally, Congress will attempt to invalidate the rule on its own, with the bipartisan Congressional Review Act
resolution passing in the House and awaiting action in the Senate. However even if the bill passes in the Senate
the President will veto it.)
OHSA Walk Around Rule.
OSHA’s final regulation that would permit a union organizer to be designated an
employee representative in a non-union workplace, and accompany an OSHA inspector during a walk around
inspection, went to the White House office in charge of reviewing regulations on February 9. The rule will
eliminate a requirement that an employee representative be an employee of the employer (with narrow
exceptions for technical expertise) which means any third party could be designated an employee representative.
This would include environmental activists, anti-fossil fuel activists, plaintiffs’ attorneys, or anyone else with an
agenda against the employer. The new regulation also does not limit how many employee representatives could
be included in an OSHA inspection. Because this regulation is highly desired by the administration’s union
supporters, this regulation is expected to be finalized quickly and issued sometime this spring. Employers who do
not have a collective bargaining agreement should ensure they have a written procedure in place that instructs
management on how to receive OSHA inspectors who wish to gain access to the workplace. It will be important to
check the credentials of each individual seeking to participate in the walk around and gain a clear understanding
from the OSHA inspector regarding the agency’s authority to conduct the walk around inspection and the purpose
of other individuals joining the walk around and if it is reasonably necessary to conduct an effective and through
physical inspection of the workplace.
Davis Bacon Rule. Which in part requires we pay our construction workforce contractors/subcontractors fair wages.
(5) How Can Our Audience Achieve its mobility mission despite Washington’s dysfunction? So I think there are 3
key functions that are critical to achieving any public policy mission in Washington despite the dysfunction.
Setting expectations with your company or your client through effective communicating is critical. At
Samsung that means communicating effectively with our leadership in Korea and here in America, as well
as our lateral teams so they are all aware of what is happening in real time in DC. And because at
Samsung we are working around numerous time zones and at times experience language barriers we not
only hold weekly calls with our key stakeholders, but we also send out weekly reports to those
stakeholders and we do our best to meet with them quarterly in person.
(2) Raising your company or client’s visibility on the ground in DC, is extremely important, whether I do
that through a helpful trade association like the US Chamber by participating in their labor relations
committee or the Semiconductor Industry Association where I help set the workforce agenda or through
relevant coalitions like Compete America where I help lead the coalition on the Executive Committee and
as an advocacy chair – this year I have joined the SEMI Foundation’s Advisory Council – to help us be more
visible on WFD and DEI issues. And of course part of being visible is also doing the shoe leather lobbying
to build key relationships on the Hill, in the agencies and at the White House.
(3) Influencing Outcomes that benefit your company or clients – And this involves both preventing bad
outcomes and making progress on positive public policy changes. This can only truly be done effectively
through a successful network of relationships in the USG, with industry, through coalition and trade
memberships, and by leading on issues that are prime for resolution. One recent example I will share is I
co-chair Compete America’s Advocacy committee and we will be hosting a number of briefings to educate
Congressional offices on the value of high-skilled immigrants this year- so by helping to lead those efforts
we can help shape the message for the Hill. Another example is early this year I was successful in getting
my America’s CHRO on an advisory board at one of our trade associations where I am hopeful we will be
able to impact employment and labor public policies the trade association will be working on this year.
Possible Other General Talking Points around these issues to use if Asked or can bolster a statement:
Suggested General Samsung Talking Points
Samsung’s commitment to the United States is unwavering, and nothing is more emblematic of that than
Samsung’s long partnership in the U.S.
The U.S. is a critical manufacturing base for our semiconductors, home appliances, EV batteries as well as
one of the largest markets for Samsung products.
Samsung has been in the United States for over 40 years and producing chips in the U.S. since 1996.
Suggested Samsung Semiconductor Talking Points
We were the first foreign company to produce chips onshore in the United States, and our site in Austin
continues to lead the way.
It remains one of the largest and most advanced sites in the U.S., as well as one of the largest foreign
direct investments.
We’ve double-downed on our partnership in America and have begun construction on leading edge
manufacturing facilities in the rural town of Taylor, Texas just north of Austin.
We will be manufacturing advanced semiconductors at that site for the first time in America.
We broke ground on the site in February 2022. Today, we’ve completed critical portions of what will be
one of the largest semiconductor facilities in the country, on 250 acres of our 1,200-acre site in Taylor.
And just to give you a sense of the size of phase 1 of our Taylor facility, our manufacturing floor will be
half a mile long and two football fields wide.
Passage of the grants and investment tax credit in the CHIPS & Science Act was absolutely critical to
support these and future investments in the US.
And we are very appreciative of Congress’s and the Administration’s ongoing effort on implementation.
As you know, we were among the strongest vocal supporters of the legislation in Washington.
We’ve had a good relationship with the CHIPS Program office and have had numerous engagements with
the team. We’ve also had great direct connectivity with the Secretary.
Samsung submitted a proposal as a part of the CHIPS grant application process and as you might imagine,
we are eager to continue to move forward in the process.
Building on the strong US-ROK alliance, this site will be strategic to the US and we look forward to
continue contributing to the great partnerships between our nations.
Workforce development and Talent Pipeline
Samsung is committed to expanding our efforts to grow our U.S. workforce and talent pipeline by
investing in the talent we need internally and through university and community partners.
Samsung has contributed to creating jobs and training local workforce for 27 years, and our new Taylor facility is expected to directly create more than 2,000 high-tech jobs.
In addition to the thousands of construction jobs required to build the facility, the ongoing economic
impact to the region that this investment will have and the impact for others in the ecosystem, including
our upstream and downstream partners.
All of this, of course, adds up to thousands of quality, good paying jobs at our US facilities.
Samsung has contributed immensely to building a talent pipeline in the semiconductor industry to grow
our workforce for the future in U.S.
New policies that expand the semiconductor talent pipeline are critical, especially with the increased
competition for talent.
We recognize the need to cultivate STEM talent in the U.S., and there remains a vital need for
immigration programs that allow for companies to hire top global talent in the U.S.
Labor Unions
We value all of our employees, and offer highly competitive wages for the high skilled workforce
necessitated by the complexity of the semiconductor manufacturing process.
We comply with state and federal regulations when it comes to labor policies and laws.
To build our fabs on our aggressive timeline, we are hiring the best qualified people in the region, which
includes those from labor unions where all wages exceed the prevailing wage requirements.
The Taylor facility, for instance, will not only create upskilling opportunities for engineers but also will
help create employment opportunities in other areas, such as construction for various contractors and
union organizations.