Trouble in Your Tank: Metallizing Flexible Circuit Materials—Mitigating Deposit Stress
It’s Only Common Sense: Sales as a Team Sport
Dan’s Biz Bookshelf: ‘In Defense of a Liberal Education’
SIA Commends Introduction of Bipartisan Legislation to Restore Immediate Deductibility of R&D Investments
March 20, 2023 | SIAEstimated reading time: 2 minutes
The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer commending the introduction in Congress of bipartisan legislation to restore full tax deductibility of R&D investments. The legislation, the American Innovation and Jobs Act, was introduced in the Senate by Sens. Maggie Hassan (D-N.H.) and Todd Young (R-Ind.) along with 10 other cosponsors.
“We applaud the bipartisan group of senators—led by Sens. Hassan and Young—for introducing this legislation, and we urge its swift approval.
“R&D investments are the lifeblood of innovation in the semiconductor industry, giving rise to technologies that reinforce our economy, national security, and high-tech workforce. The U.S. chip industry plows an average of one-fifth of its revenues back into R&D annually, one of the largest shares of any sector. Those investments propel rapid innovation in semiconductor technologies and seismic advancements in computing, 5G, health care, energy, AI, and more.
“Restoring the decades-long policy of allowing the immediate, full deduction of R&D investments would help make the U.S. a more competitive place for R&D and innovation, boost economic growth and job creation, and attract and retain talented workers. We look forward to working with leaders in Congress to get this bipartisan, commonsense initiative across the finish line in short order.”
Since 1954, R&D expenditures were treated as an immediate deduction. For decades, the immediate deduction for U.S. R&D expenditures provided a longstanding incentive for chip companies to make those investments, helping maintain U.S. leadership in this vital technology. As of 2022, however, U.S. R&D expenses must now be amortized over five years, making it less attractive to perform R&D in America and harming U.S. competitiveness in the semiconductor industry.
Even prior to the amortization requirement, the U.S. R&D incentive trailed those offered by global competitors, and without action to restore immediate deductibility of R&D expenses, the U.S. ranking for incentivizing research is projected to fall to the bottom quarter of OECD countries.
In addition, R&D costs are rising exponentially, with the most advanced semiconductor node costing more than $500 million to design, double the cost to design the previous leading-edge chips. Full and immediate expensing is necessary to spur R&D investments in the U.S. semiconductor industry and allow companies to further innovate and expand the domestic R&D workforce.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Nolan’s Notes: The Interconnectedness of a Global Supply Chain
08/04/2025 | Nolan Johnson -- Column: Nolan's NotesYou may recall when I’ve discussed the research and development of a particular magazine issue topic and how, at times, I’ve pivoted at the last minute because of what I learned from the information I’ve gathered. This month, my original focus was on cultivating your brand, but the more I investigated the topic, the more my subject experts leaned toward international supply chain strategies. Not surprisingly, these two disparate topics are far more interrelated than they might seem.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
08/01/2025 | Nolan Johnson, I-Connect007We start with the latest report from the Global Electronics Association: North American PCB sales are down 8.6% in June. That might sound grim, but keep reading—there’s more to the story. Bookings are holding steady, and Dr. Shawn DuBravac offers context that paints a more balanced picture. Next, we turn our gaze to India, where mobile phone exports have surged 127-fold over the past decade. That stat alone says volumes about India’s emergence as a force in electronics manufacturing, something we’ll be digging into more deeply in an upcoming SMT007 feature.
Brent Laufenberg Appointed CIO of the Global Electronics Association, Advancing Technology and Member Services
07/31/2025 | Global Electronics AssociationThe Global Electronics Association (formerly IPC International Inc.) announces the appointment of Brent Laufenberg as its new Chief Information Officer (CIO).
Teramount Raises $50M to Address Growing Demand for AI Infrastructure Optical Connectivity
07/31/2025 | PRNewswireTeramount, the leader in scalable fiber-to-chip interconnect solutions for AI, data centers and advanced computing, today announced it has raised $50 million in financing led by new investor Koch Disruptive Technologies (KDT). Existing investors Grove Ventures and several new strategic investors, including AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund and Wistron, joined the round.
Considering the Future of Impending Copper Tariffs
07/30/2025 | I-Connect007 Editorial TeamThe Global Electronics Association is alerting industry members that a potential 50% tariff on copper could hit U.S. electronics manufacturers where it hurts.