In a letter sent to the United States Congress, SEMI, the leading industry association serving the global electronics design and manufacturing supply chain, and 16 member companies urged Congress include in reconciliation an expansion and extension of the Advanced Manufacturing Investment Tax Credit. The letter calls for the expansion of eligibility for the federal investment tax credit (ITC) to make the entire semiconductor manufacturing supply chain, as well as R&D and design expenditures eligible for the ITC and extend the credit beyond the current 2026 expiration date—to allow sufficient time to plan and execute investments.
The U.S. semiconductor market is growing to meet the needs of critical technology applications like artificial intelligence (AI), telecommunications, and bioengineering that rely on semiconductors. That growth requires increased investment for upstream materials, chemicals, and electronic design automation (EDA), which are currently excluded from receiving the tax credit (also known as Sec. 48D). Excluding these critical manufacturing and R&D projects undermines domestic investment efforts potentially ceding U.S. leadership and competitiveness.
Semiconductor infrastructure requires billions of dollars in upfront investment, and tax incentives are essential to help offset these exorbitant costs. A competitive tax environment encourages semiconductor companies to invest in the U.S., strengthening domestic manufacturing and innovation while helping the U.S. meet its goals of maintaining global leadership with lower-cost regions also providing incentives.
Also, the credit expires at the end of 2026, leaving insufficient planning and implementation time for the billions in upfront investment required to support semiconductor infrastructure in the United States.
To support the success, growth, and innovation of the U.S. semiconductor ecosystem, SEMI and its members urge Congress to include in the reconciliation package:
- Expansion of the Sec. 48D tax credit for the entire supply chain—as included in the SEMI Investment Act (S. 1642)
- Extension of the credit to allow enough time for businesses to plan and execute needed investments as included in the BASIC Act (H.R. 3204)
- Recognition of R&D and design expenditures as eligible Sec. 48D projects as included in the STAR Act (H.R. 802)
These inclusions are crucial to maintain U.S. competitiveness in attracting global semiconductor industry investments.
The letter was signed by CEOs or presidents of the following leading companies: SEMI; ASML; ASM; Advantest America, Inc.; Axcelis Technologies Inc.; Brewer Science; Chemours; Dupont’s Electronics business, and Qnity™; Entegris; Evatec NA, Inc.; EFC Gases & Advanced Materials; GlobalWafers Co., Ltd.; Lam Research Corporation; Micron Technology; Tokyo Electron America, Inc. TEL Manufacturing and Engineering of America, Inc.; SACHEM, Inc.; SkyWater Technology.
Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.
Christina Banoub, Senior Manager, Federal Affairs at SEMI.
