MILPITAS, Calif. – October 28, 2021 – SEMI, the industry association serving the global electronics design and manufacturing supply chain, today applauded the inclusion of an Advanced Manufacturing Investment Credit in the Build Back Better reconciliation bill. A minimum credit of 5%, increasing to 25% if certain conditions are met, would be provided for buildings and equipment to manufacture semiconductors and semiconductor tooling equipment if the facility commences construction before January 1, 2027.
“SEMI is thrilled that a semiconductor manufacturing tax credit for the production of chips and semiconductor tools has been included in the Build Back Better reconciliation bill,” said Ajit Manocha, SEMI president and CEO. “This credit will provide a strong incentive for the production of semiconductors and semiconductor manufacturing equipment in the United States and make the U.S. more competitive in this vital industry. We thank President Joe Biden, Senate Finance Committee Chairman Ron Wyden for his leadership and determination to include this provision, and the original co-sponsors of the FABS Act.”
“We look forward to working with Congress to pass this bill and fund the CHIPS Act programs, which together will further strengthen the semiconductor supply chain in the United States, help U.S. policies keep pace with incentive proposals around the world and create thousands of high-skill jobs,” Manocha said. “The inclusion of semiconductor tool manufacturing facilities is particularly important, as lead times and demand for new tools continue to grow. In addition, the delayed requirement to amortize research expenses and the maintenance of the Foreign-Derived Intangible Income deduction are other important elements that will preserve and improve the competitiveness of the industry in the United States.”
The Advanced Manufacturing Investment Credit is a modified, temporary version of the Facilitating American-Built Semiconductors (FABS) Act (S.2107). The credit included in the reconciliation bill retains important features of the FABS Act credit, including an election to receive the tax credit as a direct payment, for investments in semiconductor manufacturing facilities and facilities and equipment to produce semiconductor manufacturing tools.
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.
About SEMI
SEMI® connects more than 2,400 member companies and 1.3 million professionals worldwide to advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA) and the MEMS & Sensors Industry Group (MSIG) are SEMI Strategic Technology Communities, defined communities within SEMI focused on specific technologies. Visit www.semi.org to learn more, contact one of our worldwide offices, and connect with SEMI on LinkedIn and Twitter.
SEMI Contact
Samer Bahou/SEMI
Phone: 1.408.943.7870
Email: [email protected]
“Monthly billings of North America-based semiconductor equipment manufacturers edged up in September to near the record high set in July,” said Ajit Manocha, president and CEO of SEMI “The ongoing growth in key end-market segments and silicon content continues to drive gains for the semiconductor manufacturing ecosystem including equipment.”
Semiconductor manufacturing resiliency is growing in importance as the semiconductor supply chain works to overcome disruptions and shortages trigged by the pandemic. SEMICON Europa will explore ways the global supply chain can better withstand shocks in the future. 
Themed Forward as One, SEMICON Japan 2021 Hybrid will showcase opportunities for the semiconductor manufacturing and design supply chain to enable a smarter world through advances in Smart Mobility, mobile communications and other applications powering industry growth. The rising importance of semiconductor manufacturing sustainabilty will also come into sharp focus as more companies across the supply chain work to reduce their carbon footprint. 
“We are seeing a significant increase in silicon shipments driven by strong secular demand for semiconductors across multiple end markets,” said Inna Skvortsova, an Industry Research & Statistics market analyst at SEMI. “The growth momentum is expected to continue in the following years but could be tempered by the slowing pace of the macroeconomic recovery and timing of the wafer manufacturing capacity additions needed to meet growing demand.”
“The industry reported double-digit year-over-year revenue growth for Q2 2021,” said Walden C. Rhines, Executive Sponsor, SEMI Electronic Design Market Data report. “Product categories Computer Aided Engineering (CAE), Printed Circuit Board and Multi-Chip Module (PCB and MCM), Semiconductor IP (SIP), and Services all reported double-digit growth.”
China is expected to claim the largest share of installed capacity – 33% – by 2023, followed by Japan at 17%, Europe and the Mideast at 16%, and Taiwan at 11%, proportions that are expected to change little as the industry remains on track to add more than 360,000 WPM in 2024.
Proposed by European Commission President Ursula von der Leyen in her State of the Union speech on September 15, the European Chips Act is part of the Commission’s policies to achieve the digital transformation of the region’s economy by 2030 under its Digital Decade plan.
Featuring more than 550 exhibitors in over 2,000 booths and chip industry leaders such as TSMC, ASE and Nanya Technology, SEMICON Taiwan 2021 – themed Forward as One – will showcase cutting-edge advances and solutions in critical semiconductor industry areas including heterogeneous integration, green manufacturing, smart and advanced manufacturing, advanced testing, strategic materials, and MEMS and sensors. 
“After an extraordinary eight-month run of record-breaking results, billings of North America-based semiconductor equipment manufacturers expectedly softened in August compared to July,” said Ajit Manocha, SEMI president and CEO. “Nonetheless, billings continue to reflect strong demand for semiconductor equipment and solid year-over-year growth.”