SEMI and semiconductor firms seek extended investment credit

SEMI and 23 semiconductor industry companies are urging the US Congress to extend the Advanced Manufacturing Investment Credit (AMIC), emphasizing its crucial role in sustaining the momentum of domestic chip production and supply chain investment. The current 35% tax credit, designed to bolster semiconductor manufacturing projects in the US, is set to expire in 2026. This expiration comes at a time when the demand for chips related to AI, quantum computing, telecoms, and other emerging technologies is rapidly increasing.

For readers of eeNews Europe, the discussion surrounding AMIC holds significance as it underscores the intensifying global competition for semiconductor manufacturing capacity and supply chain resilience. The decision on AMIC could also impact the future investment strategies of major chipmakers and equipment suppliers operating in Europe and the US.

Industry Stresses Investment Concerns

In a letter addressed to Congress, SEMI and its members emphasized that allowing the credit to lapse would introduce uncertainty for long-term manufacturing projects that necessitate substantial upfront capital investment. Joe Stockunas stated, “The Advanced Manufacturing Investment Credit is crucial for driving semiconductor growth in the US, particularly with the escalating demand from emerging technologies like AI and quantum technologies. The impending expiration of AMIC poses a threat to business planning and long-term capital investment. Congress must take action promptly to ensure American competitiveness and a resilient supply chain.”

The association highlighted that the semiconductor industry is on the brink of rapid expansion fueled by next-generation applications. However, it cautioned that fabs and associated infrastructure projects heavily rely on stable tax and policy frameworks to progress.

SEMI also advocated for broadening the tax credit to encompass additional segments of the semiconductor ecosystem currently excluded from the program, such as semiconductor materials, chemicals, and electronic design automation (EDA) tools.

Support from Major Chip Industry Players

The signatories of the letter represent various facets of the semiconductor supply chain, including chipmakers, wafer suppliers, equipment vendors, and test specialists. Notable companies endorsing the extension include Intel Corporation, TSMC, Samsung, SK hynix Inc., Applied Materials, Inc., ASML, and Tokyo Electron U.S. Holdings, Inc..

Other supporters encompass GlobalFoundries, Texas Instruments, and Lam Research Corporation. The push for an extension aligns with the global trend of governments intensifying semiconductor incentives and industrial policies to secure regional manufacturing capacity and reduce reliance on foreign supply chains.