SEMI Applauds Senate Support of Financial Incentives to Grow U.S. Semiconductor Manufacturing

SEMI President and CEO Ajit Manocha has voiced his support for amendments the United States House of Representatives and Senate included in the Fiscal Year 2021 National Defense Authorization Act (NDAA) that would authorize important programs to support semiconductor manufacturing and research in the U.S.

“SEMI is very pleased the House and Senate included in the NDAA provisions to support semiconductor manufacturing and research in the United States,” Manocha said. “The U.S. has not kept pace with the growth of semiconductor manufacturing abroad. The U.S. share of global semiconductor manufacturing capacity has been cut in half to just 12 percent over the past 20 years and is forecast to fall to 10 percent by 2023. We applaud the sponsors for their support, leadership and hard work to win House and Senate approval to increase federal government support for the industry. However, this is just the start of what needs to be done to reverse this 20-year decline. The CHIPS for America Act’s investment tax credit for new and expanded semiconductor manufacturing facilities is essential to provide a robust, transparent and reliable federal incentive that will be the foundation of renewed growth of U.S. fabs.”

In addition to authorizing a new grant program, the House and Senate amendments would direct the Defense Department to create programs with the private sector to:

• Direct the Defense Department to create programs with the private sector to encourage the development of advanced, measurably secure microelectronics,
• Establish a Multilateral Microelectronics Security Fund the U.S., its allies and partners will use to reach agreements promoting consistency in their policies related to microelectronics,
• Direct the President to establish a subcommittee on semiconductor technology and innovation within the National Science and Technology Council, and
• Direct the Secretary of Commerce to establish a national semiconductor technology center and other important new programs.

The House amendment would authorize an additional $1.2 billion for semiconductor research. Both the House and Senate are expected to complete debate and pass the NDAA bills this week.

SEMI members operate semiconductor supply chain facilities across the U.S. Of the 25 states with at least one major facility, 18 boast large semiconductor manufacturing fabs and other facilities while seven offer semiconductor equipment and materials production. Operating for decades, many of these facilities are key pillars of local economies and underpin hundreds of small businesses that supply components and materials. The U.S. semiconductor supply chain accounts for about 240,000 high-skill and high-wage jobs nationwide.

— Joe Pasetti is Vice President of Global Public Policy and Advocacy at SEMI. 

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