SEMI Supports Introduction of FABS Act in US Senate

SEMI expressed strong support for the Facilitating American-Built Semiconductors (FABS) Act. The bill, introduced by Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID), and co-sponsored by Senators Mark Warner (D-VA), John Cornyn (R-TX), Debbie Stabenow (D-MI) and Steve Daines (R-MT), would create a 25% federal tax credit, with an election to receive the tax credit as a direct payment, for investments in semiconductor manufacturing facilities and equipment, as well as facilities and equipment to produce semiconductor manufacturing tools.

“SEMI commends Chairman Wyden, Ranking Member Crapo, and Senators Warner, Cornyn, Stabenow and Daines for their leadership to introduce a broad investment tax credit that will strengthen U.S. semiconductor supply chains and help U.S. policies keep pace with incentive proposals around the world,” said Ajit Manocha, SEMI president and CEO. “As lead times and demand for new tools grow, ensuring that upstream tool manu-facturers can claim the tax incentive is particularly important.”

“We strongly support the FABS Act and look forward to working with the Senate, the House of Representatives and the Biden Administration to pass this critical legislation,” Manocha said.