The Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer commending the introduction in the U.S. House of Representatives of bipartisan legislation that would expand the CHIPS and Science Act’s 25% investment tax credit to include investments in semiconductor design, the critical and high-value-add mapping of a chip’s intricate circuitry. The Semiconductor Technology Advancement and Research (STAR) Act was introduced today by Reps. Blake Moore (R-UT), Michael McCaul (R-TX), Doris Matsui (D-CA.), Suzan DelBene (D-WA), John Moolenaar (R-MI), Raja Krishnamoorthi (D-IL), Ro Khanna (D-CA), Joe Morelle (D-NY), and Claudia Tenney (R-NY).
“For America to lead the world in semiconductor innovation, it must continue to lead in chip design. The STAR Act will help promote this critical part of the semiconductor ecosystem and strengthen America’s economy, national security, and technology leadership. We applaud Reps. Moore, McCaul, Matsui, DelBene, Moolenaar, Khanna, Morelle, and Tenney for introducing this much-needed legislation and urge Congress to approve it.”
The United States has long been the leader in semiconductor design, which has enabled the U.S. to foster key innovations across the digital economy in areas such as artificial intelligence, 5G communications, robotics, healthcare, and autonomous vehicles. The U.S. has built-in advantages in chip design, including being home to the world’s best universities and a highly skilled workforce. Global competition in chip design is increasing, however, as other countries actively support the development of their own design sectors.
Global competitors are investing in chip design, while the U.S. lacks direct incentives for semiconductor design, thereby placing U.S. leadership at risk. A November 2022 report by SIA and the Boston Consulting Group found incentives for semiconductor design and R&D would help maintain long-term U.S. chip design leadership. Such an investment would fortify the U.S. design ecosystem, support training and employment for more than 150,000 jobs across the economy, and help the U.S. win the global competition for key semiconductor-dependent innovations of the future, according to the report.
The CHIPS and Science Act—now codified in 26 U.S.C. § 48D—includes a critical investment tax credit for semiconductor manufacturing, but not for design.
