SIA Applauds House Passage of CHIPS Act, Urges President to Sign Bill into Law
Thursday, Jul 28, 2022, 3:05pm
by Semiconductor Industry Association
Bill includes critical semiconductor manufacturing incentives and research investments that will strengthen America’s economy, national security, and chip supply chains
WASHINGTON—July 28, 2022—The Semiconductor Industry Association (SIA) released the following statement today from President and CEO John Neuffer commending House passage of the CHIPS Act of 2022 (H.R. 4346), legislation that would provide $52 billion for semiconductor manufacturing incentives and research investments, as well as an investment tax credit for semiconductor manufacturing. The Senate passed the bill yesterday, and it will now be sent to President Biden’s desk to be signed into law.
“By passing the CHIPS Act, Congress has risen to a defining challenge of our time, seized an historic opportunity to fortify American semiconductor manufacturing, design, and research, and delivered a big win for our country. The bill’s investments in chip production and innovation will strengthen America’s economy and national security – both of which rely heavily on chips – and reinforce our country’s semiconductor supply chains.
“We applaud the unwavering leadership of the bill’s champions in Congress – led by Sens. Schumer, Cornyn, and Warner, as well as Reps. Matsui and McCaul – and salute the tireless work of President Biden, Secretary Raimondo, and others in the administration to advance the legislation. The CHIPS Act will help usher in a better, brighter American future built on semiconductors, and we urge the president to swiftly sign it into law.”
The CHIPS Act of 2022 has a total cost of $79.344 billion 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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Semiconductor Industry Association
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, SIA 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.