| International
Trade Agreements | Export Controls
| Telecommunications Policy | Digital
Rights Management | Patent Reform | Competitiveness
| Tax Issues | Radio Frequency
Identification (RFid) | Environment, Safety
& Health | Human Resources
International Trade Agreements
TI derives over eighty percent of its revenues from sales in
overseas markets. Free trade agreements make it possible for
TI to manufacture and design in the U.S. and still have access
to key markets in other countries. TI continues to benefit from
U.S. leadership in removing tariffs on information technology
through agreements such as the Information Technology Agreement
and the agreement on Multichip Packages. These agreements would
not be possible without the existence of Trade Promotion Authority.
TI supports advancing the Free Trade Agreements (FTAs) currently
under negotiation or awaiting Congressional approval. In the
multilateral context, TI has benefited from China’s accession
to the World Trade Organization (WTO). China has reduced tariffs
on semiconductors and removed other barriers to their market.
TI continues to be engaged in new issues of China’s compliance
with its WTO obligations as they arise. TI supports the expansion
of WTO commitments through the Doha Round of negotiations.
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Export Controls
TI, like all other U.S. semiconductor companies, is subject
to a set of U.S. Government regulations which govern the export
of semiconductors, equipment, and technology to particular countries
and to citizens of certain countries. TI has a strong compliance
function that ensures TI does its part to protect national security
concerns. However, in conjunction with compliance activities,
TI also provides an important contribution to revising existing
regulations and to shaping new regulations. U.S. regulations
can become outdated or may need to be streamlined. TI has been
very active in advising the Department of Commerce on the deemed
export rule, control levels applied to microprocessors and generally
on export controls as they apply to a key market, e.g., China.
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Telecommunications Policy
Wireless
TI is a leading global supplier of GSM and W-CDMA chipsets
to mobile handset and base station manufacturers. As such, the
company supports efforts to identify and make available additional
radiofrequency spectrum for the deployment of 3G mobile technologies.
Ideally, such spectrum should be common among regions of the
world. TI supports technology neutrality – allowing service
providers, not government regulators, to determine which technology
to deploy.
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Digital Rights Management
TI is a key technology provider for consumer products that
allow users to view or listen to protected content. TI supports
the principle of fair use for consumers and has opposed efforts
to curtail fair use or to impose technology mandates on technology
providers.
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Patent Reform
The House has passed and the Senate is considering legislation
that would significantly alter U.S. patent law (H.R. 1908; S.
1145). TI has a strong patent portfolio resulting from significant
investment in R&D, and is concerned about the negative effects
of the proposed legislation on genuine innovators like TI.
The proposed legislation would dramatically alter the procedure
for calculating damages, which would minimize awards and encourage
infringement. The bill’s changes to venue rules would distort
the system in favor of defendants and create backlogs in key
districts.
Further, since legislation was first proposed in 2005, the
legal landscape for patent rights has changed dramatically,
with a number of Supreme Court and Federal Circuit cases curtailing
a perceived imbalance in favor of patent holders.
A number of stakeholders, including biotechnology, nanotechnology,
venture capital, manufacturing, pharmaceutical, and universities
have raised concerns with the proposed legislation. TI believes
that these concerns must be resolved before Senate passage.
Any patent reform legislation should protect the rights of patent
holders in a broad range of innovative sectors.
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Competitiveness
The ability for the U.S. to remain the world’s innovation leader
is a top public policy priority for TI. The critical components
to the future competitiveness of the U.S. semiconductor industry
and our nation are: increased investments in basic research,
improvements in math/science education, and access to and retention
of the world’s brightest minds. TI supports the Administration’s
American Competitiveness Initiative (ACI), the House Democratic
Innovation Agenda, and the bipartisan AmericaCOMPETES legislation
signed in August 2007 to address these issues.
The Semiconductor Industry Association has launched the “Choose
to Compete” campaign (www.choosetocompete.org)
that outlines policy recommendations to maintain U.S. competitiveness
in the industry.
Basic Research Funding
Basic research at U.S. universities is key to addressing national
challenges such as energy, security, and medical advances. TI
supports increased federal funding for basic research, especially
in the physical sciences and engineering. University research
laboratories need sufficient funding to attract the best and
brightest professors and students in the fields of engineering,
physics, chemistry and other technology areas. TI advocates
for increased appropriations for the National Science Foundation
(NSF) and National Institute of Standards and Technology (NIST)
and to achieve the goal of doubling basic research in the physical
sciences and engineering at NSF and NIST as is outlined in the
ACI and AmericaCOMPETES. TI supports full funding of the university-based
Focus Center Research Program, a partnership of the semiconductor
industry and the Department of Defense that investigates the
key technical challenges identified in extending CMOS. TI urges
Congress to reauthorize the National Nanotechnology Act, with
specific mention of the challenge of nanoelectronics. TI believes
that investments in basic research are critical to maintaining
U.S. technological leadership, and essential to increasing the
pool of highly-educated individuals in technical fields in the
United States.
Immigration
Science and engineering professionals are essential to TI's
growth and success. Most graduates from U.S. advanced degree
programs in technical fields are foreign nationals. TI supports
reforming immigration policy to facilitate the ability to hire
and retain highly educated individuals in sufficient numbers
to meet our workforce needs. In particular, individuals with
advanced degrees in science, technology, engineering, and mathematics
are critical to U.S. competitiveness, and should be given priority
for permanent resident status. TI opposes legislation that places
unnecessary burdens on employers.
Education
TI's success depends on a well-qualified workforce. Yet finding
and retaining technically skilled employees is an increasing
challenge for all high tech firms. TI is actively engaged with
federal, state and local governments to promote educational
excellence at all grade levels. For example, at the K-12 level,
TI actively supports initiatives to increase focus on math and
science proficiency. This support is consistent with TI’s support
for federal, state and local programs designed to improve math
and science teaching and student performance. In addition, TI
supported the No Child Left Behind Act, and supports reauthorization
of the legislation with an emphasis on high standards and accountability
for student achievement.
At the university level, TI actively supports the industry/university
consortium, the Texas Engineering and Technical Consortium,
that directs federal, state, and private dollars to programs
to increase the enrollment and retention of electrical engineers
and computer science majors from Texas colleges and universities.
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Tax Issues
R&D Tax Credit
TI supports federal and state tax policies that support and
encourage research and development. The R&D Tax Credit is
TI’s single most critical legislative tax issue which has been
renewed and then allowed to lapse several times since it was
first introduced in 1987. TI has been working through its associations
and the R&D Tax Credit Coalition to improve the credit and
make it permanent so that the perennial effort to renew it can
be shelved.
Tax Reform
Tax reform was last addressed in major legislation in 1987.
In the intervening time, many proposals have been made but overall
reform of corporate taxes has not occurred. TI closely monitors
the issue and participates in the public policy debates where
appropriate. The U.S.’s 39% combined federal and state corporate
tax rate is the second highest among OECD countries. This puts
the U.S. at a clear disadvantage in global competition with
other countries where the rates are lower and incentives like
the R&D Tax Credit are higher.
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Radio Frequency Identification (RFid)
TI is a leading supplier of RFID, both for retail supply chain
applications and also for use in secure contactless payments.
TI has developed a secure solution for identity documents such
as e-passports. TI has worked with other interested parties
to achieve balanced legislation at the state level.
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Environment, Safety and Health
TI has a strong record of commitment to worker safety, assuring
a safe workplace and being a responsible steward of the environment.
A good example of that objective is the sustainable design of
TI’s new RFAB. In the legislative and regulatory area, TI works
to promote laws that are well-informed and responsible and discourage
those that place undue burdens on the company’s operations.
With the increasingly assertive regulatory approach of the European
Union and some Asian countries, TI must also monitor and seek
to influence environmental regulations around the world.
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Human Resources
The overall goal is to help TI offer policies that provide
TI the greatest flexibility in health and retirement benefits
and offer the best, most cost-effective protection for TI employees.
TI’s particular focus involves promoting greater consumerism
in health care, managing burdensome regulations and high costs
associated with retiree health care and promoting health IT
to drive increased safety, efficiency, accountability and quality
of care.
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