Top Business Groups Urge Congress to Extend, Expand Successful Semiconductor Tax Credit

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The Semiconductor Industry Association (SIA) and a broad coalition of 17 other top business and trade groups in a letter urged Congress to extend the Advanced Manufacturing Investment Credit (AMIC) – a highly impactful tax credit for chip production that is set to expire at the end of this year – and expand it to cover semiconductor design and other critical R&D activities.

The letter’s signatories represent key sectors across the American economy, including semiconductors, artificial intelligence, cloud computing, defense and aerospace, connected and autonomous vehicles, advanced wireless communications, medical technology, and manufacturing.

“To be the world’s economic, technology, and security leader, America must lead the world in semiconductors,” said SIA President and CEO John Neuffer. “The Advanced Manufacturing Investment Credit has been a major driver of America’s recent semiconductor resurgence, and it’s critical policymakers act now to build on this success. Congress must extend and expand the tax credit to spur increased private investment in the U.S. chip ecosystem and reinforce America’s economy, national security, and leadership in the pivotal technologies of today and tomorrow.”

The AMIC has helped catalyze major investments throughout the U.S. semiconductor ecosystem. In total, over $640 billion in investments have been announced throughout the chip supply chain across 140 projects in 30 states – more than tripling U.S. semiconductor manufacturing capacity. These investments strengthen the semiconductor industry ecosystem and bolster supply chain resilience and the global competitiveness of the industries that depend on these technologies.

At a time when the semiconductor industry is making historic investments in U.S. chip production and supply chain resiliency, it is imperative we extend the AMIC to continue this momentum, spur future innovation, and provide companies with the certainty and predictability needed to make long-term capital investments in the United States. It is also critical to secure U.S. leadership in chip design by expanding the credit to cover these activities, which will help level the playing field between the U.S. and global competitors, secure America’s first-mover advantage, and ensure global standards are built on the U.S. tech stack across all industries.