SIA Applauds House Introduction of Legislation to Strengthen American Chip Manufacturing and Design

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The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer commending the introduction in the U.S. House of Representatives of the bipartisan Semiconductor Technology Advancement and Research (STAR) Act. The STAR Act extends the duration of the Advanced Manufacturing Investment Credit (AMIC)—a 25% tax credit for chip production—and expands eligibility of the credit to include investments in semiconductor design, the research-intensive mapping of a chip’s intricate circuitry and functionality. Reps. Blake Moore (R-UT), Suzan DelBene (D-WA), Michael McCaul (R-TX), Doris Matsui (D-CA), John Moolenaar (R-MI), and Raja Krishnamoorthi (D-IL) led eight other House members in introducing the legislation. A similar version of the legislation was introduced in the House last year.

“U.S. leadership in semiconductor research, design, and manufacturing is critical to America’s economy, technology leadership, and national security. The CHIPS Act’s investment tax credit has been hugely successful in strengthening America’s semiconductor ecosystem, spurring substantial private investment and helping to put the U.S. on track to more than triple domestic chip manufacturing capacity by 2032, the largest percentage increase in the world. By extending the duration of the credit, the STAR Act would build on this momentum by promoting further growth in chip manufacturing here in the United States.

“By expanding coverage of the credit to include chip design, the STAR Act would ensure the U.S. secures the economic, national security, and first-mover advantages of being the global leader in semiconductor technology. At a time when global competitors are making historic investments in their own chip ecosystems, we urge Congress to pass the STAR Act to help America win the chip race, enhance our economic and national security, and reinforce U.S. semiconductor leadership for years to come.”

The AMIC, codified under Section 48D, has proven to be a powerful incentive for investment in chip fabrication and packaging. It has helped attract $450 billion in private investment and is strengthening our economy, national security, and supply chain resilience. The AMIC expires at the end of 2026, and extending it would allow the U.S. to maintain momentum in reinforcing its domestic chip capabilities.

Despite having built-in advantages in chip design—including being home to the leading chip design companies, the world’s best universities, and a highly skilled workforce—the U.S. is facing challenges to its design leadership and continues to trail the incentives offered by global competitors for innovation in chip design and R&D investments. The STAR Act helps to level the playing field between the U.S. and global competitors and ensure the U.S. retains its first-mover advantage by maintaining America’s technological edge.

Reps. Moore, DelBene, McCaul, Matsui, Moolenaar, and Krishnamoorthi were joined in introduction by Reps. Tenney (R-NY), Khanna (D-CA), Buchanan (R-FL), Morelle (D-NY), Carson (D-IN), Gottheimer (D-NJ), Sewell (D-AL), and Panetta (D-CA).

SIA called for passage of the STAR Act in a policy agenda released earlier this month titled “Winning the Chip Race.”