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CHIPS for America Act & FABS Act

 

 

Invest in Domestic Semiconductor Manufacturing, Research & Design

The share of modern semiconductor manufacturing capacity located in the U.S. has eroded from 37% in 1990 to 12% today, mostly because other countries’ governments have invested ambitiously in chip manufacturing incentives and the U.S. government has not. Meanwhile, federal investments in chip research have held flat as a share of GDP, while other countries have significantly ramped up research investments.

By enacting the CHIPS for America Act in the FY 2021 National Defense Authorization Act (NDAA), Congress recognized the critical role the U.S. semiconductor industry plays in America’s future. Now, the administration and Congress must fully fund the semiconductor manufacturing and research provisions authorized by the CHIPS Act — and enact an investment tax credit — to strengthen America’s global leadership in chip technology for years to come. 

The U.S. Senate on June 8, 2021 took a significant step toward this goal by passing broad competitiveness legislation called the U.S. Innovation and Competition Act (USICA) (S.1260), which includes $52 billion in federal investments for the domestic semiconductor research, design, and manufacturing provisions in the CHIPS Act. The House of Representatives followed suit, passing competitiveness legislation called the America COMPETES Act, which also includes $52 billion in CHIPS Act investments, on Feb. 4, 2022. Now the House and Senate must reach agreement on  joint competitiveness legislation containing CHIPS Act investments that can be passed by both chambers and signed into law by President Biden.

Congress is also considering legislation called the FABS Act that would establish a semiconductor investment tax credit. The FABS Act should include expenditures for both manufacturing and design to help strengthen the entire semiconductor ecosystem.

By funding the CHIPS Act and expanding and enacting the FABS Act, leaders in Washington can usher in a historic resurgence of chip manufacturing in America, strengthen our country’s most critical industries, boost domestic chip research and design, and help ensure the U.S. leads in the crucial, chip-enabled technologies that will define America’s strength for decades to come.

Fact Sheet>

SIA News>

What They’re Saying>

Global Incentives>

SIA Commends House Passage of Critical Semiconductor Manufacturing and Research Investments

“House passage of CHIPS Act investments is a significant step toward strengthening America’s leadership in semiconductors, which are foundational to our economy, national security, and global leadership in the transformative technologies of now and the future,” said John Neuffer, SIA president and CEO. “We urge leaders in the House and Senate to work together promptly on a bipartisan, bicameral competitiveness bill containing CHIPS Act investments that can be passed by both chambers and signed into law by the president. Getting this legislation across the finish line will help strengthen U.S. chip production and innovation for many years to come.”

Read Full Statement >

Featured News

SIA Echoes National Security Leaders’ Call for Swift Enactment of Competitiveness Legislation, Including Chip Manufacturing and Research Investments
SIA Applauds Senate Introduction of FABS Act
Senate Passage of USICA Marks Major Step Toward Enacting Needed Semiconductor Investments
Robust Federal Incentives for Domestic Chip Manufacturing Would Create an Average of Nearly 200,000 American Jobs Annually as Fabs are Built
SIA Welcomes White House Report on Strengthening America’s Semiconductor Supply Chains
Global Governments Ramp Up Pace of Chip Investments

Letters to Policymakers

Multi-Industry CEO Letter to Congressional Leadership in Support of Funding the CHIPS Act and Enacting a Strengthened FABS Act
Bipartisan, Bicameral Letter to President Biden Supporting Funding for CHIPS for America Act
Governors’ Letter to Congressional Leaders in Support of CHIPS Act & FABS Act
SIA Letter to President Biden about Semiconductor Manufacturing and Research Funding
Multi Association Letter on CHIPS and FABS Act
Tech Coalition Letter to President Biden on CHIPS Act Funding and Supply Chain Executive Order

Policy Reports

Chipping In: The U.S. Semiconductor Industry Workforce and How Federal Incentives Will Increase Domestic Jobs
Strengthening the Global Semiconductor Supply Chain in an Uncertain Era
2021 State of the U.S. Semiconductor Industry
Turning the Tide for Semiconductor Manufacturing in the U.S.
Sparking Innovation: How Federal Investment in Semiconductor R&D Spurs U.S. Economic Growth and Job Creation
Strengthening the U.S. Semiconductor Industrial Base

Other Resources

U.S. Semiconductor Leadership: A Policy Platform
Invest & Innovate: U.S. Semiconductor Leadership Under the Biden-Harris Administration
Infographic on the Need for Incentives for Semiconductor Manufacturing and Investments in Semiconductor Research
Increasing Chip Production: Industry Shouldering In to Address Shortages
The Importance of Federal Semiconductor R&D Funding
SIA Comments to Commerce on CHIPS Implementation

Semiconductors in America Coalition (SIAC)

SIAC Letter to Congressional Leaders Urging Swift Enactment of Competitiveness Legislation Including Semiconductor Incentives
SIAC Commends Senate Passage of Critical Semiconductor Investments in USICA
Semiconductor Industry and Downstream Sector Leaders Form Coalition to Secure Federal Investments in Domestic Chip Manufacturing and Research

American Jobs are Built on Semiconductors

The semiconductor industry directly employs nearly 250,000 people in America and supports more than one million additional jobs throughout the U.S. economy. With bold greater federal investment in domestic chip manufacturing and research, our economic impact would be even greater.

Learn More >

12%
U.S. share of global semiconductor manufacturing has declined from 37% in 1990 to 12% today
75%
Of the world’s chip manufacturing is concentrated in East Asia due to large government subsidies
56%
Projected increase in global demand for semiconductor manufacturing capacity in the next 10 years
30%
A new fab in the U.S. costs approximately 30% more to build and operate over 10 years than one in Taiwan, South Korea, or Singapore, and 37-50% more than one in China.

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