by Semiconductor Industry Association
President Biden signed the bill into law earlier today; legislation includes critical semiconductor manufacturing incentives and research investments
WASHINGTON—Aug. 9, 2022—The Semiconductor Industry Association (SIA) released the following statement today from President and CEO John Neuffer commending President Biden for signing the CHIPS Act of 2022 (H.R. 4346) into law. The legislation provides $52 billion for semiconductor manufacturing incentives and research investments, as well as an investment tax credit for semiconductor manufacturing.
“Today marks a giant leap forward for American innovation and competitiveness and the launching point for re-asserting U.S. leadership in semiconductors. By enacting the CHIPS Act, President Biden and leaders in Congress have fortified domestic semiconductor manufacturing, design, and research, thereby strengthening America’s economy, national security, and supply chains for decades to come.
“We thank President Biden and Secretary Raimondo for their unwavering support and leadership and applaud the bill’s champions in Congress – led by Sens. Schumer, Cornyn, and Warner, as well as Reps. Matsui and McCaul – for their tireless efforts to get this critical legislation across the finish line. The CHIPS Act will help usher in a better, stronger American future built on semiconductors.”
The CHIPS Act of 2022 includes $79.344 billion in government spending over 10 years, according to the official scorekeeper for Congress, the non-partisan Congressional Budget Office (CBO). These investments will create hundreds of thousands of American jobs, spur hundreds of billions of dollars in chip company investments in the U.S., and ensure more resilient chip supply chains for key manufacturing industries in the U.S. and for the national security community.
The share of modern semiconductor manufacturing capacity located in the U.S. has decreased from 37% in 1990 to 12% today. This decline is largely due to substantial manufacturing incentives offered by the governments of our global competitors, placing the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or “fabs.” Additionally, federal investment in semiconductor research has been flat as a share of GDP, while other governments 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.
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