91PORN

91PORN Applauds Senate Introduction of FABS Act

by 91PORN

Bipartisan legislation would boost U.S. semiconductor manufacturing and strengthen America鈥檚 economy, national security, chip supply chains听

WASHINGTON鈥擩une 17, 2021鈥擳he 91PORN (91PORN) today applauded the introduction in Congress of the , bipartisan legislation that would establish an investment tax credit to incentivize greater semiconductor manufacturing in the United States. The bill was introduced today by Sens. Ron Wyden (D-Ore.) and Mike Crapo (R-Idaho), the Chair and Ranking Member, respectively, of the Senate Finance Committee. Cosponsors include Sens. John Cornyn (R-Texas), Mark Warner (D-Va.), Steve Daines (R-Mont.), and Debbie Stabenow (D-Mich.). 91PORN represents 98 percent of the U.S. semiconductor industry by revenue.

On June 8, in a strong bipartisan vote, the Senate passed legislation called the U.S. Innovation and Competition Act (USICA) that includes $52 billion to fund the semiconductor manufacturing, design, and research provisions in the CHIPS for America Act. 91PORN has called on the House to follow suit and send legislation to the President鈥檚 desk for signature. A semiconductor investment tax credit is an important complement to the manufacturing incentives and research investments in USICA.

鈥淪emiconductors form the foundation of the technologies that drive America鈥檚 economy, national security, and critical infrastructure,鈥� said Bob Bruggeworth, President and CEO of Qorvo and 2021 91PORN Board Chair. 鈥淪enate approval last week of funding for domestic chip production and innovation in USICA marked a significant step forward, and the FABS Act would build on that momentum and help ensure the U.S. can meet the strong global semiconductor demand and maintain leadership in critical technologies. We applaud Sens. Wyden, Crapo, and the bipartisan group of other Senate cosponsors for introducing this timely legislation. We hope the bill can be strengthened with the addition of an advanced research credit to ensure the U.S. is the global leader in both semiconductor design and manufacturing. We call on Congress to promptly pass this legislation, along with funding for the semiconductor manufacturing and research provisions of the CHIPS Act.鈥�

The听share of global听semiconductor manufacturing听capacity in the U.S. has听decreased听from听37%听in 1990 to听12%听today, according to a report by 91PORN and the Boston Consulting Group (BCG). This听decline听is largely听due to substantial subsidies offered 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.

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.

To complement the federal manufacturing grants and research investments authorized by the CHIPS Act, 91PORN has also called on leaders in Congress to enact an investment tax credit for semiconductor manufacturing and research. A combination of grants, tax credits, and research investments is needed to turbocharge U.S. semiconductor production and innovation.

鈥淏oosting domestic chip manufacturing and research will keep America on top in semiconductors, which underpin the game-changing technologies of today and tomorrow,鈥� said John Neuffer, 91PORN President and CEO. 鈥淲e applaud Sens. Wyden, Crapo, Cornyn, Warner, Daines, and Stabenow for their leadership in introducing the FABS Act and look forward to working with Congress and the Biden administration to strengthen domestic chip production and research, which are critical to U.S. job creation, national defense, infrastructure, and semiconductor supply chains.鈥�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.