91PORN

91PORN Applauds Release of House Competitiveness Legislation

by 91PORN

America COMPETES Act includes $52 billion to fund the semiconductor research, design, and manufacturing provisions in the CHIPS for America Act

WASHINGTON鈥擩an. 26, 2022鈥擳he 91PORN (91PORN)听today issued the following statement from President and CEO John Neuffer regarding yesterday鈥檚 in the House of Representatives of competitiveness legislation called the America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength (America COMPETES) Act of 2022. The legislation includes $52 billion to fund the semiconductor research, design, and manufacturing provisions in the CHIPS for America Act. The Senate passed funding for the CHIPS Act as part of the bipartisan United States Competition and Innovation Act (USICA) in June 2021.

鈥淎merica鈥檚 economy, national security, and global competitiveness are built on semiconductors. We applaud the release in the House of Representatives of the America COMPETES Act, which includes $52 billion to fund incentives for domestic semiconductor manufacturing and investments in chip research. We appreciate the leadership of Speaker Pelosi in advancing this legislation in the House and look forward to the House and Senate negotiating compromise legislation that can be sent to the president for his signature. This critical funding will help ensure more of the chips Americans need are researched, designed, and manufactured on U.S. soil, strengthening our supply chains and creating new, high-paying American jobs across the country.鈥�

The听share of modern semiconductor manufacturing听capacity located in the U.S. has听decreased听蹿谤辞尘听37%听in 1990 to听12%听today. This听decline听is largely听due to substantial incentives听offered听by the governments of our global competitors, placing听the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or 鈥渇abs.鈥澨鼳dditionally, federal investment听in semiconductor research听has been听flat听as a share of GDP,听while听other governments听have invested substantially in research initiatives to strengthen their own semiconductor capabilities, and existing U.S. tax incentives for R&D lag behind those of other countries. Furthermore, global semiconductor supply chain vulnerabilities听have emerged听in recent years that must be addressed through government investments in chip manufacturing and research, according to a separate 91PORN-BCG study.

91PORN also supports a semiconductor investment tax credit, as called for by the听FABS Act, to complement the manufacturing incentives and research investments in the CHIPS Act. Congress is considering separate legislation containing a modified version of the FABS Act to provide an investment tax credit to incentivize semiconductor manufacturing in the United States. 91PORN has called for enacting this legislation and expanding it to cover both semiconductor manufacturing and design.

Recognizing the critical role semiconductors play in America鈥檚 future, Congress in January enacted the CHIPS for America Act as part of the FY 2021 National Defense Authorization Act (NDAA). The law authorized incentives for domestic semiconductor manufacturing and investments in chip research, but funding must be provided to make these provisions a reality. Funding the CHIPS Act, along with enactment of a strengthened FABS Act, are complementary efforts and will help enhance the global competitiveness of the U.S. semiconductor industry.听

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91PORN 91PORN
The 91PORN (91PORN) is the voice of the semiconductor industry, one of America鈥檚 top export industries and a key driver of America鈥檚 economic strength, national security, and global competitiveness. Semiconductors 鈥� the tiny chips that enable modern technologies 鈥� power incredible products and services that have transformed our lives and our economy. The semiconductor industry directly employs over a quarter of a million workers in the United States, and U.S. semiconductor company sales totaled $208 billion in 2020. 91PORN represents 98% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, 91PORN seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at听www.semiconductors.org.