Royal Kastens

Manufacturing is a cornerstone of U.S. national security and economic prosperity, supporting jobs, growth, and global competitiveness. Within this ecosystem, the U.S. semiconductor industry holds a uniquely critical role, powering the advanced technologies that form the backbone of the modern world. Realizing the full potential of American manufacturing, however, depends on a policy environment that encourages investment and innovation. The pro-growth, competitive, and predictable tax policies in President Trump’s Working Families Tax Cuts (WFTC) are therefore essential to sustaining global leadership of the U.S. semiconductor industry. SEMI welcomes the Administration’s signing of the “One Big Beautiful Bill” and delivering a pro-investment tax framework that accelerates domestic investment and strengthens the American semiconductor industry’s global competitiveness. Demand for semiconductors is rapidly increasing, driven by critical applications such as artificial intelligence and quantum technologies that are integral to American innovation and national security. Meeting this demand requires billions in capital investment across the comprehensive supply chain, making tax policy a key factor in investment decisions. Policies such as the WFTC’s permanent extension and doubling of immediate expensing for qualifying equipment and software provide a significant advantage for companies building, maintaining, and supporting American chip-making. Likewise, by making 100% bonus depreciation permanent, the WFTC allows businesses to expense qualified equipment and property in the first year, significantly improving return on investment for capital-intensive semiconductor projects.Importantly, the American semiconductor supply chain includes not only large manufacturers but also droves of small and medium-sized businesses. President Trump’s WFTC permanently extends the Section 199A deduction, leveling the playing field for these businesses that would otherwise face higher hurdles to growth. That long-term tax certainty allows for businesses to confidently invest in and expand their facilities, hire new employees, and grow production—directly supporting American families. Together these pro-growth tax cuts help drive American semiconductor innovation, growth, and competitiveness. SEMI applauds the Administration’s competitive WFTC policies that support the full semiconductor supply chain. The WFTC allow companies to commit the capital necessary for multi-year semiconductor manufacturing investments with confidence and drive continued U.S. semiconductor and technological leadership. SEMI supports the Administration’s efforts to make the United States the premier destination to do business and looks forward to continued collaboration on U.S. economic and national security policy priorities. Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Royal Kastens is Vice President, Global Public Policy Advocacy at SEMI.

On February 20, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the use of tariffs, invalidating certain tariffs imposed by the Trump Administration under the statute.SEMI shared the following statement on the ruling: SEMI acknowledges today’s U.S. Supreme Court ruling regarding the use of tariffs under the International Emergency Economic Powers Act. As the implications of the decision become clearer, we welcome further guidance and remain committed to working with the U.S. government to strengthen semiconductor supply chains, support innovation, and expand domestic chip manufacturing.Continued investment in U.S. manufacturing depends on stable, reliable access to the highly specialized equipment, materials, and components essential to semiconductor production. Driven by global demand, breakthrough innovation, and record levels of investment, the semiconductor industry is projected to reach a $1 trillion market this year. Clear, consistent, and predictable trade policy remains critical to providing manufacturers – particularly small- and medium-sized enterprises – the certainty necessary to sustain long term investment, scale production, and reinforce technological leadership in the United States.Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Royal Kastens is Vice President, Global Public Policy Advocacy at SEMI.

On Friday, September 19, 2025, the President signed a proclamation requiring a new $100,000 fee for United States H-1B visa applications effective September 21, 2025 seeking to curb what the administration views as significant overuse. A memorandum later issued by the United States Citizenship and Immigration Services (USCIS) Director clarified that the fee applies only to new, unfiled petitions. Current visa holders can continue traveling to and from the United States.While SEMI recognizes the economic and strategic concerns raised by the administration, the high cost of the new fee poses a significant burden on SEMI members and the broader technology industry. As SEMI members continue to share the impact this policy will create on their operations, SEMI will work with fellow trade associations to address the high-cost of the fee and find solutions for the administration’s policy concerns.The proclamation cites misuse and calls "abuse of the H-1B program" a "national security threat." All entries under an H-1B visa beginning September 21, 2025, are restricted unless supplemented by the $100,000 payment. The administration must review this restriction annually, and DHS will issue implementation guidance. The proclamation also directs DHS to revise prevailing wage levels and prioritize "high-skilled and high-paid" applicants.The H-1B program currently caps new visas at 65,000 annually, plus 20,000 for those with U.S. master's degrees or higher. Employers must petition for these visas. Demand for skilled workers—especially in technology-driven industries like semiconductors—far exceeds the limited H-1B supply. The changes risk driving away U.S.-educated foreign graduates and their skills to foreign markets, further straining workforce needs.SEMI recognizes the impact of the proposed H1-B visa fee on companies, particularly the additional burden it places on smaller firms. While SEMI supports the administration’s objectives, the policy will create near-term challenges — especially for companies working to scale in order to meet the goals set by Congress and the administration to strengthen economic and national security. By straining the talent and resources these companies rely on, the fee risks undermining those objectives.In the coming days, SEMI will be gathering information to better understand the impact across the industry, with particular attention to smaller companies. This input will guide our communications with the administration as it refines the policy. We will also be meeting with member companies to assess the impact and prepare talking points for upcoming discussions with the administration.Next Steps: SEMI issued an initial statement recognizing the administration's economic and security concerns while urging collaboration on solutions that benefit economic growth and talent retention. SEMI will work with industry groups, the administration, and Congress to address H-1B challenges and help grow the American workforce while retaining global talent. SEMI is spearheading a letter to the administration highlighting industry concerns while expressing the desire to work together, and we will be inviting related industry associations and groups to join us. SEMI encourages members to share details on the anticipated impact of the policy on their operations. Please reach out to Christina Banoub at [email protected] policy aligns with forthcoming H-1B rulemaking that would weigh applications by wage levels instead of the current lottery system. The rule hasn't yet appeared in the Federal Register but should follow soon.Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Royal Kastens, Senior Director of Public Policy and Advocacy at SEMI.