SEMI and Member Companies Appeal to Congress for R&D Tax Credit Extension


Bookmark and Share

SEMI and Member Companies Appeal to Congress for
R&D Tax Credit Extension

R&D Tax Credit will keep American economy competitive in a global environment

WASHINGTON, D.C. – Wednesday, September 13, 2006 – Today SEMI member companies have joined SEMI and over 600 other companies and associations urging Congress to pass the R&D tax credit extension prior to the election. The current proposal of the R&D tax credit, which expired on December 31, 2005, would extend it through 2007, apply it retroactively, and make improvements.

The semiconductor equipment and materials industry is highly dependent on R&D. SEMI members face some of the highest R&D costs due to the fast-paced and complex challenges of microelectronics. A recent study conducted by SEMI, Semiconductor Equipment and Materials: Funding the Future, found that an industry R&D gap could reach upwards of $9.3 billion by 2010. On average, SEMI member companies spend 15 percent of their revenues on R&D for advanced semiconductor manufacturing processes and technology. Some industry segments, like lithography, incur even greater costs for R&D.

“As one of the fundamental spurs for our nation’s competitiveness, it is disheartening that Congress has not extended the R&D tax credit,” stated SEMI North America President, Victoria Hadfield. “Other nations have recognized the economic benefits of an R&D tax credit and have embraced this critical incentive. The United States must do the same and work to strengthen and improve the R&D tax credit in future years.”

“In order to keep the American economy competitive in a global environment with rapid economic growth in other nations, we must invest in initiatives that will provide long-term benefits such as education, tax incentives, and R&D.” Hadfield continued, “SEMI strongly urges Congress to enact the R&D tax credit prior to the election to allow companies to take credit for their R&D and to provide them with this valuable tool to keep America competitive.”

SEMI is a global industry association serving companies that provide equipment, materials and services used to manufacture semiconductors, displays, nano-scaled structures, micro-electromechanical systems (MEMS) and related technologies. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Shanghai, Singapore, Tokyo and Washington, D.C. For more information, visit www.semi.org.

ASSOCIATION CONTACTS:

Ken Schramko/SEMI
Tel: 1.202.289.0440
E-mail: kschramko@semi.org

Scott Smith/SEMI
Tel: 1.408.943.7957
E-mail: ssmith@semi.org