Paul van Gerven
12 June 2020

US lawmakers introduced legislation to provide about 25 billion dollars to prop up domestic semiconductor manufacturing. The proposal, which enjoys bipartisan support, encompasses tax credits for purchasing semiconductor equipment and federal funds to match state incentives for building fabs and R&D funding.

The US is increasingly worried about its reliance on Asia, particularly Taiwan, for advanced chips. China’s efforts to build a semiconductor industry of its own are a major source of concern as well. In a multi-pronged approach, the US has recently been taking steps to both expand domestic semiconductor manufacturing and deny China crucial semiconductor-related technologies.

The Semiconductor Industry Association (SIA) welcomed the proposal, citing lack of federal incentives causing the US IC manufacturing prowess to slip. “Semiconductors were invented in America and US companies still lead the world in chip technology today, but as a result of substantial government investments from global competitors, the US today accounts for only 12 percent of global semiconductor manufacturing capacity,” said SIA chairman Keith Jackson.

“As global competitors invest big to attract advanced semiconductor manufacturing to their shores, the US must get in the game and make our country a more competitive place to produce this strategically important technology,” added SIA president and CEO John Neuffer.