The Semiconductor Industry Association (SIA) and a coalition of 17 business vendors and trade groups sent a letter to Congress urging the government to extend the Advanced Manufacturing Investment Credit (AMIC).
The coalition said the tax credit has sparked hundred of billions of dollars in private investment across the U.S. semiconductor ecosystem. These tax credits are set to expire at the end of 2026.
The coalition also urged Congress to expand the credit to cover chip design and other semiconductor R&D efforts.
“To be the world’s economic, technology, and security leader, America must lead the world in semiconductors,” said John Neuffer, president and CEO of SIA. “The Advanced Manufacturing Investment Credit has been a major driver of America’s recent semiconductor resurgence, and it’s critical policymakers act now to build on this success.”
To spur further private investment in the semiconductor ecosystem and reinforce U.S. economic, national security and leadership interests, these tax credits are needed, Neuffer added.
Those vendors that signed the letter run the gamut of key sectors like:
- Semiconductors
- AI
- Cloud computing
- Defense and aerospace
- Connected and autonomous vehicles
- Advanced wireless communications
- Healthcare engineering
- Semiconductor manufacturing
Major investments
According to the SIA, the AMIC has led to major investments in the chip supply chain to the tune of more than $640 billion in investments across 140 projects in 30 states.
This is more than tripling U.S. semiconductor manufacturing capacity.
