Public Policy

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.

The House Semiconductor Caucus event held on March 17, 2026 at the Rayburn House Office Building in Washington, D.C. brought together industry leaders for an in-depth panel discussion around the upstream vulnerabilities in the U.S. semiconductor supply chain and policy actions Congress should consider. If policymakers do not hear from all segments of the supply chain, critical issues go unaddressed and the policies that result are less effective than they could be. Events like this reflect SEMI’s mission to bring the full breadth of the supply chain into policy conversations. Key topics addressed during this panel were supply chain and critical material challenges, tax and domestic incentives, and export controls and trade policy. The briefing featured executives from leading materials companies—Entegris, Materion, Avient, and CoorsTek—and was moderated by SEMI. They shared firsthand insights into bottlenecks and risks within the global supply chain, emphasizing how disruptions in sourcing and processing critical materials can threaten the entire semiconductor manufacturing process. The event also addressed the need for targeted policy actions to strengthen U.S. competitiveness, such as extending and expanding the Sec. 48D tax credit, targeting R D in specific areas, and workforce development. The event underscored the strategic significance of a robust and resilient semiconductor supply chain as a cornerstone of national and economic security, particularly in light of ongoing global supply chain uncertainties. The panel encouraged policymakers to increase consultation with industry stakeholders and consider specific, actionable steps to close existing gaps and support the entire ecosystem. The Q A session allowed congressional staff to engage directly with experts, further deepening their understanding of the complex challenges facing the semiconductor industry today. SEMI is the preferred trusted partner to the government and the event concluded with a networking lunch to reinforce the collaborative spirit between industry and government that is necessary to build a stronger, more secure future.Thank you to Representative Zoe Lofgren for providing a keynote address, Representative Michael McCaul for collaborating with SEMI to host this panel event, and to our speakers for raising these important issues and sharing timely insights. Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Scarlett Bickerton, Manager, Federal State Affairs 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 December 13, SEMI submitted its response to a Request for Information (RFI) from the U.S. Department of Commerce (the Department) regarding the newly launched American Artificial Intelligence (AI) Exports Program. The intent of this program is to position U.S. firms as global leaders in AI by connecting them with international buyers, leveraging the Department's export promotion tools and supporting industry-led consortia through targeted government backing. By issuing this RFI, the Department intends to solicit input on the development of industry-led consortia capable of delivering full-stack American AI export packages under the American AI Exports Program. Working with member companies, the SEMI Public Policy and Advocacy (PP A) team developed a response highlighting the importance of the semiconductor supply chain to the AI ecosystem, and offering various recommendations for consortium formation, federal support, strategic objectives, and proposal evaluation. The response was informed by direct discussions between SEMI PP A and Department officials implementing the program. Some of the key aspects of SEMI's response include the following:Broader AI Tech Stack Definition: The Department should recognize semiconductor manufacturing technologies, mature node semiconductors, and energy/environmental control systems as foundational elements of the AI technology stack. Evaluation Framework: Evaluation criteria for consortium proposals should align with CHIPS for America requirements and guardrails, focusing on national security, economic competitiveness, and commercial viability, as well as infrastructure needs.Consortia Governance: Consortia should be industry-led and feature: honest brokers capable of coordinating commercial actors while advancing national interest objectives; modularity to ensure that the various technology layers function as distinct yet interoperable units; and clear frameworks for intellectual property protections and regulatory compliance. Foreign Participation: Vetted foreign entities should be allowed to participate in the program in order to reflect the global nature of the AI ecosystem and to strengthen allied and partner nation supply chain resilience.Federal Support Mechanisms: The Department should leverage the unique capabilities of the National Institute for Standards and Technology, Center for AI Standards and Innovation, Bureau of Industry and Security, Export-Import Bank, Development Finance Corporation, and others, including expedited licensing, financing tools, tax incentives, and interagency liaisons to accelerate exports. National Security Compliance: SEMI's comments emphasize robust compliance programs, cybersecurity, supply chain security, and risk-based licensing to prevent misuse or diversion of AI technologies. Global Competitiveness and Standards: SEMI urges rapid implementation, international promotion of U.S. AI technologies, and leadership in global standards to ensure interoperability and trusted adoption worldwide.SEMI is grateful for the feedback provided by our member companies in developing this comprehensive response to the Department's RFI. Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Ben Kallen is Sr. Manager, Public Policy Advocacy at SEMI.

SEMI has submitted comments to the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) in response to its Section 232 National Security Investigation of Imports of Robotics and Industrial Machinery.The submission highlights the vital role robotics and precision machinery play in semiconductor fabrication, packaging, and inspection and emphasizes the need for a balanced, risk-based approach to any future trade actions that strengthen U.S. national security while preserving access to robotics and industrial machinery essential to expanding the domestic semiconductor industry. SEMI RecommendationsSEMI outlined five key recommendations to the Administration.Encourage Investment and Maintain Existing Competitiveness. SEMI recommends excluding essential robotics and industrial machinery where domestic sourcing is not yet viable. If trade actions are taken following the investigation, SEMI recommends providing tariff reductions or waivers for companies investing in U.S. manufacturing capacity. SEMI emphasized protecting small and medium suppliers that keep the ecosystem running.Avoid Stacking Tariffs. Coordinate Section 232 actions across potentially overlapping actions and ongoing investigations, such as on imports of steel and aluminum, semiconductors, critical minerals, and polysilicon. This will help prevent duplicative or compounding tariffs that could raise costs and slow U.S. capacity building.Implement Adjustment Periods and Sunset Provisions. SEMI recommends any trade actions should phase in gradually to allow for domestic adaptation and include regular review mechanisms to recalibrate as the market evolves.Pair Trade Actions With R D, Workforce, and U.S.-Allied Collaboration. Strengthen domestic capacity through targeted federal research and development (R D) programs, workforce training, and deeper partnerships with trusted U.S. allies to build resilient technology ecosystems.Develop a National Robotics Strategy. Given robotics’ foundational role across semiconductor and advanced manufacturing sectors, SEMI recommends that the Administration develop a National Robotics Strategy. The strategy should align federal programs including those at NIST, NSF, and Department of Energy to accelerate robotics innovation, update technical standards, and drive U.S. leadership in automation and manufacturing competitiveness.The Global ContextWorldwide installations of industrial robots surpassed 540,000 units in 2023, with the market projected to exceed $73 billion in 2025.Robotics and industrial machinery are integral to semiconductor production ensuring cleanroom integrity, precision, and throughput. Broad or overlapping tariffs could raise costs and undermine U.S. competitiveness at a time when historic investments in domestic semiconductor manufacturing are taking hold.Next StepsSEMI looks forward to working with the Department of Commerce and other federal partners to ensure that Section 232 policies enhance both U.S. national security and the industry’s global competitiveness.Read SEMI’s full submission on Regulations.gov by searching Section 232 Investigation of Imports of Robotics and Industrial Machinery (XRIN 0694-XC138).Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Marc Coldiron is Director, Global Public Policy Advocacy at SEMI.

The Department of Commerce (DOC) has issued an amended version of the semiconductor supply chain Notice of Funding Opportunity (NOFO), commonly referred to as “NOFO 2.” This NOFO is explicitly geared toward projects that would construct, expand, or modernize semiconductor materials facilities or semiconductor manufacturing equipment facilities. Initial concept plans will be accepted until November 1, 2026. DOC released the first version of NOFO 2 in September 2023. While the amended version maintains the focus on upstream suppliers of semiconductor manufacturing materials and equipment, it differs in several key aspects from the original. Outside of the application deadline extension, some of the most notable differences include the following.Project Cost: The amended NOFO 2 removes the $300 million cap on individual projects but argues that individual projects under $20 million are unlikely to reach a scale necessary for achieving strategic objectives.Cost Sharing: The amended version lacks a cost sharing requirement but notes that individual applicants "must be able to demonstrate that they have sufficient resources available to complete the proposed project, when combined with the requested CHIPS Incentives."Fab Clusters: NOFO 2 includes a focus on supporting "the development of vibrant, sustainable semiconductor clusters" by, for example, "reducing the burdens associated with transporting critical supply chain inputs." Evaluation Criteria: Proposals will be evaluated using the following five criteria:Economic and National SecurityCommercial ViabilityFinancial StrengthProject Technical Feasibility and ReadinessWorkforce Development Available Funding: The amended NOFO 2 does not specify a total amount of available funding, which is a departure from the September 2023 version, which set aside $500 million for the entire endeavor. Eligible Applicants: Eligible applicants include private sector organizations, non-profit organizations, consortia of private sector organizations, and consortia of private, public, and/or nonprofit organizations “with a demonstrated ability to substantially finance, construct, expand, or modernize a facility relating to the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment.”Application Structure and Deadlines: Initial concept plans will be accepted until November 1, 2026. DOC will notify applicants that have been invited to submit full proposals on an individual basis. Sources and Additional Information:NOFO 2NOFO 2 FAQ Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Ben Kallen is Sr. Manager, 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.

As the Department of Commerce explores options to adjust patent fees, these changes will have important implications for the semiconductor industry, where thousands of patents are filed each year to protect groundbreaking technologies. At SEMI, we understand the complexity of getting this right for our member companies. The fee proposal is not only about rates, but also about how fees are structured, applied across different types of filers, and administered in practice. Designing a system that is fair and workable is a significant challenge and one that requires close collaboration between government and industry. The SEMI Global Advocacy team is consistently engaged with the Trump Administration and Congress as a resource. We want to ensure the unique needs of the semiconductor sector are understood and that any adjustments to the fee schedule strengthen U.S. innovation without creating unintended barriers. By working together, SEMI members with U.S. operations can help shape an approach that supports the U.S. Patent and Trademark Office's mission and U.S. competitiveness. Next Steps: SEMI will continue to provide technical insight from across our membership as this process develops and looks forward to partnering with policymakers. We will also share updates as information on new patent fees become available beyond the initial reporting by the Wall Street Journal and other news outlets.Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Scarlett Bickerton, Manager, Federal State Affairs at SEMI.

On July 7, President Trump issued an executive order (EO) extending the ten percent baseline tariff rate through August 1, 2025. In addition, the EO suspends the variable "reciprocal" tariffs imposed under the International Emergency Economic Powers Act (IEEPA) until August 1. The order applies to nearly all countries except Mexico, Canada, and China. These changes do not impact separate reciprocal tariff actions on China or alter existing Section 232 measures on steel, aluminum, autos, and their derivative products. At the time of this posting, letters had been sent to 20 trading partners outlining expected tariff rates if no agreement is reached by August 1; bilateral negotiations are ongoing. Eleven of the 21 countries received rate cuts compared to the "Liberation Day" announcements on April 2, ranging from one to 13 percent. President Trump indicated rates could rise around 25 percent if trading partners retaliate. Next Steps: The extension offers short-term stability for SEMI member companies to assess supply chain exposure. SEMI continues to monitor bilateral trade and tariff policy negotiations, including for discussion related to the semiconductor supply chain. We aim to keep member companies informed of relevant tariff escalations. If your company is directly impacted by a country-specific rate shift, please reach out to your region’s SEMI Global Advocacy contact with any feedback on how these tariffs are affecting your operations.Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.Scarlett Bickerton, Manager, Federal State Affairs at SEMI.

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.