Public Policy

The new Administration in the United States has been aggressively focusing on trade measures to establish more balanced relationships with its trading partners, according to the White House.Over the last several weeks, President Trump declared a U.S. economic emergency and announced a universal 10% tariff on all countries, which went into effect on April 5, 2025. There are also levies that Trump has called “reciprocal,” including a 34% tariff on Chinese goods and a 20% tariff on European Union imports, that started on April 9.Previously announced 25% tariffs on foreign-made autos and certain auto parts are also now in effect.Presently, finished semiconductors are exempt from these tariffs, however, a Federal Register notice provided the following update:On April 1, the Secretary of Commerce initiated an investigation under section 232 of the Trade Expansion Act (19 U.S.C. 1862) to determine the effects on national security of imports of semiconductors, semiconductor manufacturing equipment (SME), and their derivative products. This includes, among other things, semiconductor substrates and bare wafers, legacy chips, leading-edge chips, microelectronics, and SME components. Derivative products include downstream products that contain semiconductors, such as those that make up the electronics supply chain. The SEMI Advocacy team is working side by side with member companies in the U.S. to prepare industry’s response for the public comment period tied to the 232 investigation. Comments are due May 7. (Update: SEMI comments submitted.)SEMI has been tirelessly working to educate new policymakers and regulators about the negative impacts the proposed tariffs have on the semiconductor industry. Ajit Manocha, President and CEO of SEMI, and Joe Stockunas, President of SEMI Americas, have been to Washington, D.C. for a series of meetings with administration officials and on Capitol Hill. Clarity on the recent tariff announcements — and guidance on what could come next — has been at the top of the agenda. Additionally, many member company executives recently attended the SEMI Washington Fly-In to advocate for policies that support the global supply chain on Capitol Hill, and the topic of tariffs was of the highest priority for congressional staff.Considering the complexities of the semiconductor industry supply chain, U.S. companies must rely on highly specialized materials, equipment, and components sourced from multiple countries. Strategically deployed and comprehensively assessed trade actions ensure that U.S. businesses maintain market access to critical supplies and remain globally competitive.Additionally, SEMI has highlighted that through fair and reciprocal trade practices, the U.S. can avoid unintended cost increases, supply chain disruptions, and ultimately any risks to American competitiveness in the global marketplace. Coordinating trade policies with allies prevents retaliatory tariffs for industries critical for national security, such as the semiconductor industry, and keeps costs competitive for consumers and industries, all while fostering a more resilient domestic manufacturing ecosystem. Semiconductor companies make substantial investments in building new facilities, and policy stability and predictability are key factors in site selections. With governments around the world putting incentives in place to bolster their semiconductor ecosystems, and to attract industry investments and good-paying jobs, public-private synchronization on trade policies is crucial to help the U.S. meet its technology innovation goals.Visit SEMI Global Advocacy to learn more about public policy efforts and developments as well as how your company or organization can get involved.John Cooney is VP, Global Advocacy Public Policy at SEMI.

On April 8-9, 2025, bees on cherry blossoms lining the streets of Washington D.C. were not the only things buzzing. The word “tariffs” floated in the air from TVs and conversations throughout Capitol Hill, as people eagerly awaited the implementation and response to United States President Donald Trump’s latest round of far-reaching trade policy. This was the backdrop for this year’s SEMI Washington Fly-In, hosted annually by the SEMI North America Advisory Board (NAAB), which gathered representatives from member companies to meet with government officials and advocate for policy changes vital to the semiconductor industry’s continued growth and innovation.SEMI executives and more than 50 representatives from member companies across the end-to-end semiconductor supply chain participated in the Fly-In. SEMI President and CEO Ajit Manocha, SEMI Americas President Joe Stockunas, and SEMI Vice President of Global Advocacy and Public Policy John Cooney met with Trump administration officials from the Department of Commerce. Reflecting the global reach of SEMI, Manocha traveled from Washington to Brussels for meetings with the European Commission. On April 8, Stockunas presided over a NAAB meeting, followed by a dinner and prep session for meetings with Congressional members and their staff the following day. Building on the priorities outlined in the briefing book prepared by Cooney’s Advocacy team in Washington, participants discussed priority messages to convey tailored to the specific officials.Focus topics included:Tariffs and Trade – Address the buzz of the day’s news cycle by spotlighting the challenges of multiple layers of tariffs facing U.S. operations due to the industry’s global supply chain.Export Control Policy – Revise export control rules to be narrow and focused with increased transparency to minimize uncertainty for companies contributing to the world’s most complex manufacturing processes.Tax Policy and Investment Incentives – Extend tax credits set to expire and expand them to include semiconductor material suppliers and packaging facilities to bolster the full semiconductor ecosystem.CHIPS Act Implementation – Streamline implementation and ensure that the full intended scope of the CHIPS Act is maintained to meet the goals of the bipartisan legislation.Workforce Development and Immigration – Highlight the need for multi-layered programs – from education to apprenticeships through career development – required to provide the skilled workforce that will underpin domestic industry expansion.Energy and Environment – Showcase the need for strong R D programs, industry-led standards, and permitting reforms to help the semiconductor industry address booming energy requirements to power Artificial Intelligence and meet the resource needs of the growing domestic chipmaking ecosystem.PFAS Regulation and R D Needs – Prioritize regulatory actions that take a risk-based approach to PFAS and other chemicals critical to semiconductor manufacturing, as well as R D to improve environmental controls and identify potential alternative substances.SEMI organized four groups by U.S. region – East, Midwest/South, Southwest and West – comprised of representatives from member companies with operations in the respective states of the Senate and House of Representative offices scheduled for meetings at Capitol Hill. On April 9, the groups met with Members of Congress and their staff from 20 of the nation’s states, including Arizona, Arkansas, California, Colorado, Delaware, Idaho, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, New Mexico, North Carolina, Ohio, Oregon, Texas, Utah, Virgina, Washington and West Virginia. The groups shared powerful perspectives, data and anecdotes on the impact of policies on their companies’ operations. While the groups for the SEMI Washington Fly-In included representatives from companies that are fierce business rivals, the focus of the discussions successfully presented a unified industry voice highlighting shared challenges, policy recommendations, and request for support – in true SEMI “Stronger Together” spirit.News of a 90-day pause on most tariffs broke while the groups were conducting their meetings. The intense difficulties of tracking changes on tariffs and other policies permeated throughout the conversations on the impact on business decision-making. While influencing policy changes will not occur instantaneously, the SEMI Washington Fly-In bolstered the SEMI Global Advocacy team’s ongoing efforts to educate officials on the nuances and critical importance of the complete semiconductor supply chain. Additionally, the discussions emphasized the policy modifications that will have the greatest impact in helping the industry continue its lasting legacy of innovation that improves the quality of life for people in the U.S. and around the world.On April 11, the Customs and Border Patrol issued an addendum to the tariff exemption list that did not result in a complete exemption for the semiconductor supply chain. President Trump posted afterward on social media: "We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations."Traditionally, such investigations have been conducted over a prolonged period of time for the government to collect data directly from companies and solicit feedback from industry. If past precedent remains, this will represent the first formal opportunity for industry to engage on the Administration's tariffs. The President has stated that his plans for tariffs on semiconductors will be unveiled this week.Visit SEMI Global Advocacy to learn more about public policy efforts and developments, and SEMI Workforce Development for more information on efforts to address the microelectronics industry’s talent needs.Samer Bahou is Director of Marketing Communications at SEMI.

Per- and polyfluoroalkyl substances (PFAS) are a large class of thousands of synthetic chemicals that are used throughout the semiconductor industry in the form of gases, liquids, and solid high-molecular weight polymers, due to their wide range of physical and chemical properties. PFAS contain carbon-fluorine bonds, which are one of the strongest chemical bonds in organic chemistry, allowing them to resist degradation and to cover long distances away from the source of their release.In recent years, the high persistence of PFAS in both the environment and the human body has encouraged the European Chemicals Agency (ECHA) to launch a PFAS restriction proposal aiming to regulate and eliminate their use over the next few years. The proposal is currently under assessment by ECHA’s scientific committees for Risk Assessment (RAC) and for Socio-Economic Analysis (SEAC).PFAS in the Semiconductor Industry The exceptional physiochemical properties of PFAS provide them a high degree of functionality in semiconductor manufacturing across the entire supply chain, and often the combination of their properties allows manufacturers to satisfy multiple and overlapping technical requirements.While the industry recognizes the importance of transitioning away from PFAS, and research to that effect is ongoing, current technological limitations do not allow the industry to manufacture semiconductors without the use of PFAS or to discover scientifically viable alternatives that can effectively substitute their use.At this point in time, no known alternatives exist for most of the uses of PFAS by the semiconductor industry. Alternative substances must be researched, invented and potentially applied into mass production to be recognized as viable alternatives. Many different pathways will have to be explored as PFAS are currently used across the entire supply chain for over 1,000 semiconductor applications, including articles, support equipment and fab operations, or as process chemicals.SEMI Europe—European Semiconductor Industry Association (ESIA) PFAS Research Workshop Considering the criticality of the PFAS issue for the semiconductor industry, SEMI and the European Semiconductor Industry Association (ESIA) have greatly strengthened their joint advocacy efforts over this past year concerning the ECHA’s PFAS restriction proposal.In this regard, SEMI and ESIA successfully organized a workshop in October 2023 with the relevant representatives of the European Commission (DG GROW, DG ENV, DG CNECT and DG RTD) to present and discuss in-depth the key technical evidence for the use of PFAS is the semiconductor sector. The discussions built upon the extensive technical evidence that was presented by SEMI and ESIA in their respective submissions for the six-month PFAS consultation facilitated by ECHA.Following the successful execution of this first workshop, there was a keen interest from the European Commission to enquire further upon the current state of play of research and development efforts in the field of PFAS detection, abatement, capture and destruction, circularity, recycling and alternativesFor this reason, after the first workshop, ESIA and SEMI collaborated to develop and deploy a joint PFAS Survey aimed at identifying the research priorities in PFAS from the perspective of their member companies. Based on the survey outcomes, the associations compiled the SEMI–ESIA PFAS Research Roadmap and officially presented it to the representatives of the European Commission during a follow-up workshop on 13th June 2024. Discussions at the workshop focused on the key research priorities for the semiconductor industry to discover potentially viable alternatives to the use of PFAS. In the upcoming legislative period, SEMI Europe will continue to engage with relevant stakeholders to contribute to the political debate and encourage a legislative framework that can enhance sustainability across industrial supply chains while preserving Europe’s technological competitive advantage. Get InvolvedGet involved in the SEMI PFAS Working Group! The SEMI PFAS Working Group is composed of industry technologists from leading companies across the global semiconductor manufacturing supply chain. The working group meets regularly to share intelligence and develop strategies to earn exemptions and/or extensions from regulators. Join SEMI in this crucial effort to enable the industry to continue manufacturing chips vital to the prosperity of the world by contacting [email protected]. Stefano Orlando is Manager Advocacy and Public Policy at SEMI Europe.

Semiconductors are the foundation of all electronics and information technology that drive our modern world.

SEMI and the SEMI PFAS working group members have strengthened their advocacy efforts concerning policies governing the use of per- and polyfluoroalkyl substances (PFAS).

Across our industry-driven programs and working groups, we are exploring new ways to engage government, academia and civil society to unlock the power of quadruple helix support and propel the semiconductor industry to $1 trillion and beyond.

In the global environment for semiconductor businesses, uncertainty prevails, and the geopolitical scene is becoming more fractured. This outlook underlay the discussions at the SEMI Industry Strategy Symposium Europe (ISS Europe) 2024 hosted in Vienna (March 7-8, 2024).

Over the course of my seven-year tenure as President and CEO of SEMI, we have worked to build the premier platform for global semiconductor industry collaboration to address its shared opportunities and challenges.

Industry associations serve a vital role in amplifying the collective voice of its members for much greater impact than individual companies going it alone.

At SEMICON West 2023, experts discussed the growing legal and regulatory risks facing the semiconductor industry and how to navigate those risks through the pursuit of sustainability strategies and broader industry collaboration on policy development.