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    SEMI Applauds Inclusion of Advanced Manufacturing Investment Credit in U.S. Build Back Better Reconciliation Bill

      VLSI's Select Industry News
      Oct 29, 2021    389   

    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.

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    “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 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 equipment, as well as 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: sbahou@semi.org

    Views: 389
    Domain: Electronics
    Category: Semiconductors