Amanda Winstead, Freelance Writer06.07.23
With the medical industry advancing, the need for smart medtech manufacturing will only continue to increase. Higher demands, rising material costs, labor shortages and other supply chain challenges can all hinder necessary medical device production.
Already, the industry is facing a shortage in the supply chain as a result of current economic conditions. And while making smarter manufacturing decisions and improving automation can help, manufacturers are still struggling to keep up with demands coupled with recent economic downturns.
Luckily, the U.S. government has taken notice and is taking steps to counteract the supply chain issues by providing more funding and investments for medical device manufacturing. Additionally, tax credits and incentives are being provided to boost research and development (R&D), training, and workforce development in the STEM sector.
These chips are used in everything from pacemakers and insulin pumps to larger devices like MRI and CT scan machines. So, if manufacturers fail to produce enough of these semiconductors, it can negatively impact the overall production of lifesaving medical technologies, which will then impact patient care and health outcomes.
Unfortunately, in recent years, medical device shortages due to supply chain issues have become a major concern. Just last summer, the FDA added autotransfusion systems, AEDs, and chest drains to the growing list of medical devices that are currently in short supply. The shortage is attributed to an increased demand for these devices as well as a worldwide shortage of components needed for semiconductor production.
While the global COVID-19 pandemic is what sparked this issue in the first place, medical experts believe that it is necessary for governments to find solutions to lessen the burden on manufacturers as we could face numerous other supply chain issues in the future, including more shutdowns due to global crisis.
In other words, this isn’t just a temporary issue that needs solving; it could potentially be an ongoing issue if more permanent solutions are not provided.
Primarily, the CHIPS and Science Act will provide funding and investments to boost semiconductor R&D and production, ensuring the medical industry gets what it needs to continue using lifesaving technologies for patient care. However, semiconductors are also used for cars, defense systems, and household devices, and even to automate the manufacturing process itself. This means that this new bill enables the U.S. to remain a leader in the STEM sector as a whole, not just for the purposes of medical advancements.
Previously, though America invented the semiconductor, we produced only around 10% of the global supply, with East Asia instead being responsible for 75% of global production. But the CHIPS and Science Act intends to unlock billions of dollars in semiconductor investment to place the U.S. back at the top for production.
The passage of the CHIPS and Science Act has already spurred numerous tech companies to announce their private investment in American semiconductor manufacturing, including Micron, with a $40 billion investment, and Qualcomm and GlobalFoundaries with $4.2 billion. Intel has also contributed $40 billion to new chip fabrication plants in Ohio and Arizona.
Specifically, the CHIPS and Science Act is set to provide $52.7 billion in semiconductor R&D, development, manufacturing, and workforce development, which includes a 25% investment tax credit for capital expenses to help with the manufacturing of semiconductors. The investments and incentives are expected to not only secure domestic supply but also create more opportunities for jobs in the industry.
There are a number of automation systems and software available today that can help improve the production of semiconductors for medtech manufacturers, including advanced CRM software, cloud computing, supply chain management software, AI-driven systems, and risk management software.
If manufacturers upgrade to these systems in addition to using the investments provided by the CHIPS and Science Act, it will significantly improve the output of semiconductors for the science, technology, and medical industries.
Amanda Winstead is a writer from the Portland area with a background in communications and a passion for telling stories. Along with writing she enjoys traveling, reading, working out, and going to concerts. If you want to follow her writing journey, or even just say hi you can find her on Twitter.
Already, the industry is facing a shortage in the supply chain as a result of current economic conditions. And while making smarter manufacturing decisions and improving automation can help, manufacturers are still struggling to keep up with demands coupled with recent economic downturns.
Luckily, the U.S. government has taken notice and is taking steps to counteract the supply chain issues by providing more funding and investments for medical device manufacturing. Additionally, tax credits and incentives are being provided to boost research and development (R&D), training, and workforce development in the STEM sector.
Supply Chain Shortages Affecting Medtech Manufacturing
Semiconductors are one of the primary technologies used in a large majority of medical devices.These chips are used in everything from pacemakers and insulin pumps to larger devices like MRI and CT scan machines. So, if manufacturers fail to produce enough of these semiconductors, it can negatively impact the overall production of lifesaving medical technologies, which will then impact patient care and health outcomes.
Unfortunately, in recent years, medical device shortages due to supply chain issues have become a major concern. Just last summer, the FDA added autotransfusion systems, AEDs, and chest drains to the growing list of medical devices that are currently in short supply. The shortage is attributed to an increased demand for these devices as well as a worldwide shortage of components needed for semiconductor production.
While the global COVID-19 pandemic is what sparked this issue in the first place, medical experts believe that it is necessary for governments to find solutions to lessen the burden on manufacturers as we could face numerous other supply chain issues in the future, including more shutdowns due to global crisis.
In other words, this isn’t just a temporary issue that needs solving; it could potentially be an ongoing issue if more permanent solutions are not provided.
How Tax Credits & the CHIPS Act Will Help Medical Supply Chain Shortages
Just last summer, in August 2022, President Biden signed into law a bill intended to improve patient care and strengthen America’s position with regard to medical technology innovation. This bill, the bipartisan CHIPS and Science Act of 2022, is a historic investment that will greatly improve manufacturing, supply chains, research and development, and the workforce in the science and technology industry.Primarily, the CHIPS and Science Act will provide funding and investments to boost semiconductor R&D and production, ensuring the medical industry gets what it needs to continue using lifesaving technologies for patient care. However, semiconductors are also used for cars, defense systems, and household devices, and even to automate the manufacturing process itself. This means that this new bill enables the U.S. to remain a leader in the STEM sector as a whole, not just for the purposes of medical advancements.
Previously, though America invented the semiconductor, we produced only around 10% of the global supply, with East Asia instead being responsible for 75% of global production. But the CHIPS and Science Act intends to unlock billions of dollars in semiconductor investment to place the U.S. back at the top for production.
The passage of the CHIPS and Science Act has already spurred numerous tech companies to announce their private investment in American semiconductor manufacturing, including Micron, with a $40 billion investment, and Qualcomm and GlobalFoundaries with $4.2 billion. Intel has also contributed $40 billion to new chip fabrication plants in Ohio and Arizona.
Specifically, the CHIPS and Science Act is set to provide $52.7 billion in semiconductor R&D, development, manufacturing, and workforce development, which includes a 25% investment tax credit for capital expenses to help with the manufacturing of semiconductors. The investments and incentives are expected to not only secure domestic supply but also create more opportunities for jobs in the industry.
Automation in Medtech Manufacturing to Bolster Semiconductor Production
With all of this new funding and investments in semiconductor production, manufacturers will have more resources to improve facilities and processes, including upgrading automation and machine technologies.There are a number of automation systems and software available today that can help improve the production of semiconductors for medtech manufacturers, including advanced CRM software, cloud computing, supply chain management software, AI-driven systems, and risk management software.
If manufacturers upgrade to these systems in addition to using the investments provided by the CHIPS and Science Act, it will significantly improve the output of semiconductors for the science, technology, and medical industries.
Amanda Winstead is a writer from the Portland area with a background in communications and a passion for telling stories. Along with writing she enjoys traveling, reading, working out, and going to concerts. If you want to follow her writing journey, or even just say hi you can find her on Twitter.