91PORN

House and Senate must reach agreement on competitiveness legislation containing $52 billion in CHIPS Act investments and send to the president鈥檚 desk to be signed into law; 91PORN also calls for enactment of an investment tax credit for semiconductor manufacturing and design听

WASHINGTON鈥擬arch 1, 2022鈥擳he 91PORN (91PORN) today released the following statement from 91PORN President and CEO John Neuffer regarding President Biden鈥檚 State of the Union Address.

鈥淲e appreciate President Biden鈥檚 continued strong support for swift enactment of competitiveness legislation containing $52 billion to incentivize semiconductor research, design, and manufacturing in the United States. These CHIPS Act investments have broad, bipartisan support from members of Congress, America鈥檚 governors and mayors, national security experts, business leaders, and the American public. Funding the CHIPS Act will spur hundreds of billions of dollars in private investments, create hundreds of thousands of American jobs, and help secure America鈥檚 supply of semiconductors for many years to come. We also urge swift enactment of a strengthened FABS Act that includes tax credits for semiconductor manufacturing and design to complement the CHIPS funding as part of a holistic, robust strategy for U.S. semiconductor leadership.

鈥淪emiconductors are foundational to America鈥檚 economy, defense systems, and global leadership in the technologies that will determine our future. With other governments around the world taking ambitious action to strengthen their own semiconductor capabilities, the time has come for leaders in Washington to fund the CHIPS Act and enact a strengthened FABS Act to keep America at the forefront of chip technology.鈥�

On Feb. 4, 2022, the House passed critical听CHIPS Act听investments totaling $52 billion to strengthen domestic semiconductor manufacturing and research as part of its competitiveness legislation, the America COMPETES Act of 2022. The Senate passed the same level of funding for the CHIPS Act as part of its version of competitiveness legislation, the听United States Competition and Innovation Act听(USICA), in June 2021. House and Senate leaders must now work on reconciling differences in the bills and passing bipartisan legislation to be signed by the president. A semiconductor investment tax credit, as called for by the FABS Act, is an important complement to the manufacturing incentives and research investments in USICA and America COMPETES.

The听share of modern semiconductor manufacturing听capacity located in the U.S. has听decreased听from听37%听in 1990 to听12%听today. This听decline听is largely听due to substantial manufacturing 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 an 91PORN-BCG study.

A combination of grants, tax credits, and research investments is needed to turbocharge U.S. semiconductor production and innovation. Enacting a strengthened FABS Act and funding the CHIPS Act are essential components of this holistic, complementary approach to strengthening America鈥檚 semiconductor capabilities over the long term.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. 91PORN represents 99% 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.