SEMI Supports CHIPS for America Act to Increase Semiconductor Manufacturing in the U.S.
June 12, 2020 | SEMIEstimated reading time: 1 minute
Facing a 50 percent decline in the U.S. share of global semiconductor manufacturing capacity over the past 20 years, Congress has introduced the Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS for America Act), highlighted by a federal investment tax credit (ITC) strongly supported by SEMI, the global industry association representing the electronics manufacturing and design supply chain.
The bipartisan legislation would improve the competitiveness of semiconductor research, design and manufacturing in the United States, resulting in the creation of thousands of new jobs and bolstering national security.
Sponsored by Sen. John Cornyn (R-Texas) and cosponsored by Sens. Mark Warner (D-Va.), Jim Risch (R-Idaho), Kyrsten Sinema (D-Ariz.), and Marco Rubio (R-Fla.) in the Senate, and sponsored in the House by Rep. Doris Matsui (D-Calif.) and cosponsored by Rep. Michael McCaul (R-Texas), the Act’s 40 percent refundable federal ITC for semiconductor manufacturing facilities and equipment would quickly provide a significant, direct and transparent incentive to all companies investing in new and expanded semiconductor facilities in the United States.
“Semiconductors are the foundation of all electronics and information technology, and this vital supply chain accounts for approximately 240,000 high-skill and high-wage jobs nationwide,” said Ajit Manocha, president and CEO of SEMI. “SEMI members operate semiconductor supply chain facilities throughout the United States, with 25 states hosting at least one major facility. The ad-hoc incentive packages offered by some states have helped attract and sustain semiconductor manufacturing facilities, but individual governors and state economic development officials are often outmatched by whole-of-government initiatives from other nations. SEMI has long advocated for a tax credit to help level the playing field, and we strongly support the CHIPS for America Act to do so.”
While U.S.-headquartered companies account for nearly half of global semiconductor sales and world-leading market share positions in semiconductor manufacturing equipment, design software, and key materials, only 12 percent of global semiconductor manufacturing capacity is located in the U.S. The availability of robust incentives in other countries and the lack of a federal U.S. incentive have been key factors driving the location of semiconductor manufacturing facilities overseas. The CHIPS for America Act would be a significant step forward for the federal government to create incentives and public investments to support the semiconductor industry in driving innovation across sectors throughout the economy.
Suggested Items
Delta Electronics Thailand Ranked Among Asia’s Top Corporates at the Alpha Southeast Asia 15th Institutional Investor Awards
07/14/2025 | Delta ElectronicsDelta Electronics (Thailand) Public Company Limited, a global leader in power management and smart green solutions, has been recognized by global investors for its excellence in investor relations and corporate governance, earning top ranking in the “Most Improved Investor Relations” at the Alpha Southeast Asia 15th Annual Institutional Investor Awards for Corporates, held on June 30, 2025, in Singapore.
Kimball Electronics' Pride Month Celebrations
07/14/2025 | Kimball ElectronicsAt Kimball Electronics, we believe in fostering a culture of inclusion, respect, and belonging. This June, our global teams came together to celebrate PRIDE Month with meaningful actions that reflect our commitment to the LGBTQ+ community.
NOTE Posts Interim Report for Q2 2025
07/14/2025 | NOTENOTE reports stable second-quarter results for 2025 with continued profitability and strong cash flow, reaffirming its growth strategy despite a challenging market environment.
Scanfil, MB Elettronica to Join Forces
07/14/2025 | ScanfilFinnish Scanfil, the largest European stock exchange listed Electronic Manufacturing Service company in terms of turnover, and Italian MB Elettronica (“MB”) from Cortona Arezzo have agreed to join forces.
PCBAA’s David Schild: Where U.S. Electronics Manufacturing Stands Today
07/14/2025 | Marcy LaRont, I-Connect007As the U.S. Congress looks toward a summer break, David Schild of PCBAA discusses the growing momentum in U.S. electronics manufacturing policy, emphasizing bipartisan support for reshoring efforts, the importance of targeted tax incentives, and the challenges posed by global competition. He highlights PCBAA’s growth, advocacy on Capitol Hill, and the need for sustained investment to revitalize the PCB industry.