Semiconductor companies around the globe issued statements on Thursday following the passage of legislation of the CHIPS and Science Act of 2022 in the U.S. House of Representatives aimed at increasing American semiconductor manufacturing. The bill provides a 25% tax credit for U.S. facilities that produce semiconductors or chipmaking equipment and $52 billion in funding for new semiconductor programs. The funding includes $39 billion for grants available to semiconductor manufacturers as well as equipment and materials suppliers and $11 billion for federal semiconductor research programs.
“Enactment of the investment tax credit and funding for CHIPS Act programs was made possible by the steadfast support of President Biden, Secretary Raimondo, the original CHIPS Act sponsors, leadership in Congress and the committees of jurisdiction,” said Ajit Manocha, SEMI president and CEO. “We thank them for their leadership and support and look forward to working to ensure these policies and programs are implemented quickly and consistently with the objective of strengthening the semiconductor supply chain in the United States.”
“The investment tax credit and funding for CHIPS Act programs will be instrumental in bolstering semiconductor manufacturing and R&D along with a wide range of technology-reliant U.S. supply chains, create thousands of high-skill jobs, and keep pace with incentive programs around the world,” said Manocha. “With semiconductor manufacturing fabs heavily reliant on a complex mix of equipment and materials providers, the inclusion of these critical contributors in the incentives will help to ensure the competitiveness and resiliency of the U.S. semiconductor ecosystem.”
“With the votes taken today in the House of Representatives and yesterday in the U.S. Senate, Congress has expressed broad, bipartisan and national support for leveling the playing field for competitive semiconductor manufacturing in the U.S.,” said Dr. Thomas Caulfield, president and CEO of GlobalFoundries. “This week, Congress took action to protect U.S. economic, supply chain and national security by accelerating semiconductor manufacturing on American soil.”
“The investment being made will pay dividends through creation of high-paying jobs, community vitality, research and development, and innovation in the U.S.,” Caulfield added. “For GlobalFoundries, joint GF-customer-government partnership is a great example of how our nation’s greatest challenges can be solved by embracing new strategies and partnering together.”
Once CHIPS Act funding legislation is signed into law, investments GlobalFoundries receives from the $52 billion in the legislation will be combined with similar investments being made by GF and its customers to expand the company’s manufacturing, research and development at its manufacturing sites in New York and Vermont. GF is already spending more than a billion dollars to expand manufacturing capacity at its campus and headquarters in Malta and is ready to accelerate its expansion plans there with the construction of new manufacturing facility, known as a “fab,” that would create roughly one-thousand high-tech jobs and thousands more to the New York State economy and semiconductor ecosystem both during construction and after the fab comes into operation.
More than ever, consumers, businesses and governments depend on semiconductor chips in mobile devices, vehicles, the Internet of Things (IoT), 5G infrastructure, national defense and many other applications. Said ASME Executive Director/CEO Tom Costabile:
“We consider passage of the CHIPS and Science Act a great victory on behalf of the entire worldwide engineering community. Engineering is at the heart of solving many of the world’s greatest problems, from the military equipment used in national security and the exploration of outer space, to the trucks on the road that keep commerce going strong and medical devices saving lives every day. Today’s groundbreaking legislation is a significant investment in advancing the technical capabilities of the United States, allowing us to innovate, compete, explore and help communities thrive like never before.”
Following the passage of the legislation by a vote of 243 to 187, Micron announces its intent to bring leading-edge memory manufacturing to the U.S.
“Today, only 2% of global memory supply is manufactured in the U.S., and all of that is produced by Micron,” said the company’s official statement. “The competitive incentives passed yesterday will allow Micron, the only U.S.-based manufacturer of memory, to grow domestic production of memory significantly in the years ahead. As a result of this bipartisan effort to ensure our economic and national security, Micron has an historic opportunity to invest in bringing the most innovative leading-edge memory manufacturing to the U.S. We look forward to sharing more details regarding our plans in the coming weeks.”
SAFE President and CEO Robbie Diamond made the following statement:
“Passage of this landmark legislation will help ensure America’s continued global leadership in semiconductor technology, spur domestic chip production, and reduce our dependence on vulnerable overseas supply chains. America created the semiconductor industry as we responded to the Soviet threat during the Cold War, and it remains vital to our national security. Today, while we continue to lead in chip design and many areas, we no longer produce the most advanced chips required to power the technologies of tomorrow such as artificial intelligence, quantum computing, 5G, and electric and autonomous vehicles that SAFE has championed to end oil dependence. These are produced by our friends and allies in East Asia. This dependence, in light of the threat Beijing poses to the region and to our supply chain, puts our economic and national security at risk. The CHIPS legislation will help put America back at the leading edge of semiconductor manufacturing and reduce this dangerous vulnerability.
“The bill also includes a 25 percent tax credit for investment in semiconductor manufacturing to provide a predictable, longer-term incentive to build on the CHIPS Act momentum, advocated by SAFE.
“Once the President signs the CHIPS and Science Act into law, the hard work begins for the Commerce Department and the semiconductor industry, who will have to implement this complex and challenging legislation and build new manufacturing capacity. In that light, we are pleased the bill contains a provision that SAFE has urged to speed up construction of new semiconductor foundries (or “fabs”) by qualifying semiconductor and other technology infrastructure projects for expedited environmental review and permitting under Title 41 of the Fixing America’s Surface Transportation (FAST) Act.
“We applaud the bipartisan coalition that produced the CHIPS Act and delivered to the President’s desk a package that will strengthen our economic and national security and create thousands of high technology jobs for Americans.”
Siemens USA President and CEO Barbara Humpton outlined the company’s support for the historic investment in American industry with the following statement:
“This historic investment passed by Congress today, in the form of the bipartisan CHIPS Act, is a major step toward strengthening our country’s industrial supply chains and growing America’s global technology leadership for decades to come. Semiconductors are vital to U.S. competitiveness and national security, and we’re encouraged that the technology and research enabled by this funding will not only ensure we address chip shortages but will showcase the power advanced manufacturing tools have to create a more resilient, sustainable, and economically competitive industrial base.
Siemens has long believed that now is the moment to modernize American manufacturing, and as both a user of semiconductors and a key software and hardware provider for the industry, we’re ready to mobilize behind the momentum this funding provides. We applaud the steadfast leadership of Congress, the White House, the Department of Commerce and industry leaders who worked together find a solution that advances American manufacturing priorities and keeps our country competitive.”
The CHIPS legislation now moves to the White House and awaits President Biden’s signature. The Biden Administration has been a strong supporter of increasing semiconductor manufacturing and the many jobs it creates in the U.S., an effort that has been led by Secretary of Commerce Gina Raimondo.