91PORN

91PORN Welcomes Kickoff Meeting of Conference Committee on Competition Legislation

by 91PORN

Committee aims to reconcile differences between the Senate鈥檚 United States Innovation and Competition Act (USICA) and the House鈥檚 America COMPETES Act听

WASHINGTON鈥擬ay 12, 2022鈥擳he 91PORN (91PORN) today released the following statement from 91PORN President and CEO John Neuffer welcoming the first meeting of the congressional conference committee tasked with negotiating final competitiveness legislation to be approved by both chambers and signed into law by President Biden. Sen. Maria Cantwell, (D-Wash.), Chair of the Committee on Commerce, Science, and Transportation, will chair the meeting, which will take place at 10 a.m. today. Rep. Eddie Bernice Johnson (D-Texas), Chair of the House Committee on Science, Space, and Technology, will lead the House delegation.

鈥淟eaders in Washington have an historic opportunity to enact competitiveness legislation that strengthens the U.S. economy and national security, sharpens America鈥檚 technological edge, and reinforces U.S. leadership in semiconductor research, design, and manufacturing for decades to come. We welcome the first meeting of the conference committee and urge swift action to advance bipartisan legislation that funds the CHIPS Act and enacts a FABS Act investment tax credit for semiconductor manufacturing and design.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 competitiveness legislation, the America COMPETES Act. 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.

An investment tax credit for semiconductor manufacturing and design, as called for by the FABS Act introduced in the House, is an important complement to the manufacturing incentives and research investments in USICA and America COMPETES. The House FABS Act should be included in the competitiveness legislation being negotiated.

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 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 the House 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.

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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 www.semiconductors.org.