Semiconductor group urges support for manufacturing, research funding

SEMI, along with 16 other organizations, are pushing the Biden administration to bolster semiconductor manufacturing and research in the U.S., which accounts for an eighth of global production.

By SEMI February 22, 2021

SEMI, the industry association serving the global electronics design and manufacturing supply chain, and 16 organizations representing industries including automotive, medical and technology urged the Biden administration to bolster domestic semiconductor manufacturing and research. The letter calls for funding the initiatives authorized in the CHIPS for America Act and the enactment of a federal investment tax credit (ITC) for semiconductor manufacturing facilities and equipment that would quickly provide a significant, direct and transparent incentive to all companies investing in new and expanded semiconductor facilities in the United States.

“Increased federal investments in semiconductor research and manufacturing will enable critical innovation that benefits a wide range of industries that rely on semiconductors, as evidenced by the organizations that cosigned this letter,” said Ajit Manocha, SEMI president and CEO, in a press release. “To reverse the declining U.S. share of global semiconductor manufacturing, we call for funding incentive programs passed last year in the NDAA and enacting an investment tax credit that would be an immediate, broad-based incentive to build new and expanded manufacturing capacity at all technology nodes.”

While U.S.-headquartered companies account for nearly half of global semiconductor sales and lead in market share across semiconductor manufacturing equipment, design software and key materials, only 12% of global semiconductor manufacturing capacity is located in the U.S.

Incentives in other countries and a lack of a federal U.S. incentive have contributed to a 50% decline in the U.S. share of global semiconductor manufacturing capacity over the past 20 years. SEMI argues that funding the bipartisan CHIPS for America Act, passed in last year’s National Defense Authorization Act (NDAA), and enacting an ITC for semiconductor investments would create strong incentives and public investments to support the semiconductor industry in driving innovation across sectors throughout the economy and would help spur the creation of thousands of new jobs nationwide.

The following groups signed the letter: Advanced Medical Technology Association (AdvaMed), Alliance for Automotive Innovation, Autos Drive America, CTIA, Global Business Alliance, IPC International, Information Technology Industry Council (ITI), Motor & Equipment Manufacturers Association, National Association of Manufacturers (NAM), National Defense Industrial Association (NDIA), SEMI, Semiconductor Industry Association (SIA), Tech CEO Council, TechNet, Telecommunications Industry Association (TIA), Trusted Supplier Steering Group, and the U.S. Chamber of Commerce.

– Edited from a SEMI press release by CFE Media. SEMI is a CFE Media content partner.