SEMI, the global industry association representing the semiconductor and electronics design and manufacturing supply chain, has expressed support for the Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act). The proposed legislation seeks to clarify that suppliers of critical materials to semiconductor manufacturers qualify for the Advanced Manufacturing Investment Tax Credit (Section 48D) established under the U.S. CHIPS and Science Act.
The bill was introduced by Senators Marsha Blackburn (R-Tenn), Michael Bennet (D-Colo), Thom Tillis (R-NC), and Chris Coons (D-Del). It aims to ensure that semiconductor materials suppliers receive equal consideration under federal incentives designed to expand domestic semiconductor manufacturing and strengthen national supply chain resilience.
According to SEMI President and CEO Ajit Manocha, the investment tax credit is a key mechanism for accelerating the buildout of the semiconductor ecosystem in the United States. Manocha emphasized that materials manufacturing projects are as essential as fabrication and equipment initiatives in meeting growing global demand for advanced logic and memory components, particularly in applications related to artificial intelligence and high-performance computing. The proposed legislation, he stated, would support the development of these projects within the United States.
The SEMI Investment Act amends the Internal Revenue Code of 1986 to explicitly include materials used in semiconductor manufacturing and equipment production within the scope of Section 48D. This clarification would allow critical materials projects to access the same 25% investment tax credit currently available to semiconductor fabs and tool manufacturers.
Manocha noted that the bipartisan nature of the bill underscores its strategic importance for bolstering U.S. national security, economic competitiveness, and the integrity of the domestic semiconductor supply chain. He further stated that enacting this legislation would reduce the risk of materials production relocating abroad and help ensure that U.S.-based suppliers benefit from the CHIPS Act incentives.
SEMI, representing more than 3,000 member companies and 1.5 million professionals globally, engages in advocacy, workforce development, sustainability, supply chain management, and other initiatives to support the semiconductor and electronics industry. Through its SEMICON® events, industry standards, technology communities, and market intelligence, SEMI facilitates collaboration and innovation across the sector.
