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.