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.
