91成人

91成人 Endorses FABS Act Introduced in House

by 91成人

Bipartisan legislation would boost U.S. semiconductor manufacturing, research, design and strengthen America鈥檚 economy, national security, chip supply chains

WASHINGTON鈥擬arch 16, 2022鈥擳he 91成人 (91成人) today applauded introduction in the House of Representatives of the Facilitating American-Built Semiconductors (FABS) Act, bipartisan legislation that would establish an investment tax credit to incentivize semiconductor manufacturing, design, and research in the United States. The bill was introduced today by Reps. McCaul (R-Texas) and Matsui (D-Calif.). Original co-sponsors include Reps. Mike Kelly (R-Pa.), DelBene (D-Wash.), Stefanik (R-N.Y.), Kildee (D-Mich.), Katko (R-N.Y.), Slotkin (D-Mich.), and Meijer (R-Mich.). Similar legislation (S. 2107) was introduced in the Senate by Finance Committee Chair Wyden (D-Oreg.), Ranking Member Crapo (R-Idaho), and other bipartisan co-sponsors.

鈥淪emiconductors form the nerve center of America鈥檚 economy and national security, and incentivizing domestic chip research, design, and manufacturing is a national priority,鈥� said John Neuffer, 91成人 president and CEO. 鈥淭he FABS Act introduced today would incentivize semiconductor companies to manufacture and design more of the chips our country needs on U.S. shores, spurring private investments and creating American jobs. We strongly support enactment of the House bill and appreciate its inclusion of a credit for both manufacturing and design to help bolster the chip ecosystem in the United States. Coupled with funding the CHIPS Act, enactment of a tax credit for semiconductor manufacturing and design as set forth in the House鈥檚 FABS Act are parts of a complementary, holistic strategy, and both are needed to produce robust, predictable, and durable incentives to restore U.S. semiconductor leadership. We applaud all the bill co-sponsors for their leadership on this issue and urge leaders in Congress to swiftly enact the bill and fund the semiconductor manufacturing incentives and research provisions in the CHIPS Act.鈥�

The bill is another indication Congress is prioritizing incentives to strengthen the semiconductor industry in the U.S. A similar bipartisan investment tax credit bill was introduced in the Senate on June 17, 2021. Additionally, on Feb. 4, 2022, the House passed critical聽CHIPS Act聽investments totaling $52 billion to strengthen domestic semiconductor manufacturing and research as part of competitiveness legislation, the America COMPETES Act of 2022. The Senate passed the same level of funding for the CHIPS Act as part of its version of competitiveness legislation, the聽United States Competition and Innovation Act聽(USICA), in June 2021. House and Senate leaders must now work on reconciling differences in the bills and passing bipartisan legislation to be signed by the president. A semiconductor investment tax credit, as called for by the FABS Act, is an important complement to the manufacturing incentives and research investments in USICA and America COMPETES.

The聽share of modern semiconductor manufacturing聽capacity located in the U.S. has聽decreased听蹿谤辞尘听37%聽in 1990 to聽12%聽today. This聽decline聽is largely聽due to substantial manufacturing incentives聽offered聽by the governments of our global competitors, placing聽the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or 鈥渇abs.鈥澛燗dditionally, federal investment聽in semiconductor research聽has been聽flat聽as a share of GDP,聽while聽other governments聽have invested substantially in research initiatives to strengthen their own semiconductor capabilities, and existing U.S. tax incentives for R&D lag those of other countries. Furthermore, global semiconductor supply chain vulnerabilities聽have emerged聽in recent years that must be addressed through government investments in chip manufacturing and research, according to an 91成人-BCG study.

A combination of grants, tax credits, and research investments is needed to turbocharge U.S. semiconductor production and innovation. Enacting a strengthened FABS Act and funding the CHIPS Act are essential components of this holistic, complementary approach to strengthening America鈥檚 semiconductor capabilities over the long term.

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91成人 91成人
The 91成人 (91成人) is the voice of the semiconductor industry, one of America鈥檚 top export industries and a key driver of America鈥檚 economic strength, national security, and global competitiveness. Semiconductors 鈥� the tiny chips that enable modern technologies 鈥� power incredible products and services that have transformed our lives and our economy. The semiconductor industry directly employs over a quarter of a million workers in the United States, and U.S. semiconductor company sales totaled $258 billion in 2021. 91成人 represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, 91成人 seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at聽www.semiconductors.org.