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WASHINGTON—Oct. 22, 2024—The Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer welcoming the release of final regulations implementing the “Advanced Manufacturing Investment Credit,” a tax credit enacted as part of the landmark CHIPS and Science Act to incentivize domestic chip production. The U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued the final regulations today. SIA worked closely with government leaders to advocate for the inclusion of industry priorities in the final regulations.
"The advanced manufacturing investment credit is a core component of the historic CHIPS and Science Act and a powerful driver of private investment in the U.S. semiconductor ecosystem. We welcome today’s issuance of final regulations and commend the Treasury Department for adopting a holistic approach in implementing the tax credit and encouraging a wide range of investments necessary to manufacture semiconductors and manufacturing equipment."
"The CHIPS tax credit has helped attract unprecedented levels of private investment in the semiconductor ecosystem. We look forward to working with leaders in Congress and the administration to build on this momentum, sustain the investments made to date, and ensure the credit covers other critical areas of the semiconductor ecosystem, such as chip design. Doing so will enable the credit to deliver maximum benefits for America’s economy, national security, and global competitiveness."
The complex, technologically advanced processes of designing and manufacturing semiconductors and semiconductor manufacturing equipment require high levels of investment in facilities and equipment. The final regulations issued today adopt a welcomed approach in implementing the 25% tax credit and allow for a wide range of qualified investments necessary to manufacture semiconductors and semiconductor manufacturing equipment. The regulations provide more certainty and flexibility for companies undertaking this massive endeavor.
The CHIPS Act’s manufacturing incentives, including the advanced manufacturing investment credit, have already sparked substantial investments in the U.S. In fact, companies in the semiconductor ecosystem have announced 90 new projects across America—totaling $450 billion in private investments—since the CHIPS Act was introduced. These announced projects will create more than 58,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional U.S. jobs throughout the U.S. economy.
Thanks largely to these new investments, the U.S. is projected to more than triple its semiconductor manufacturing capacity from 2022 to 2032—the highest rate of growth in the world during that period—according to a recent report by SIA and the Boston Consulting Group.
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About SIA
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, SIA seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at www.semiconductors.org.
