American Made Advocacy: PCBs in the National Spotlight
Defense Speak Interpreted: Extreme Financial Disparity in Drones and Missiles
The Right Approach: The End of an Era—DoD Proposes MIL-PRF-31032 Cancellation
SEMI, the global industry association serving the semiconductor and electronics design and manufacturing supply chain, brought together executives from member companies for advocacy meetings on Capitol Hill focused on extending the tax credit for investments in building up the U.S. semiconductor ecosystem. As part of the SEMI Tax Day event, industry representatives are meeting with Members of Congress, including those serving on the House Ways and Means and Senate Finance Committees, to urge swift passage of a multi-year extension of the Section 48D Advanced Manufacturing Investment Credit (AMIC) before it lapses at the end of the year.
Enacted under the CHIPS and Science Act, the Section 48D credit provides a refundable 35% tax credit for qualified investment in semiconductor and semiconductor manufacturing equipment facilities. It has helped catalyze hundreds of billions of dollars in announced U.S. semiconductor investment across 28 states. Under current law, facilities must begin construction by December 31, 2026, to qualify — a deadline SEMI says is out of step with the ongoing need for semiconductor ecosystem expansion and the multi-year timelines required to site, permit, finance, and build a semiconductor facility.
“The Advanced Manufacturing Investment Credit has been one of the most effective tools this country has for winning semiconductor investment, and its looming expiration is creating real uncertainty for companies planning projects today,” said Joe Stockunas, President, SEMI Americas. “Congress has an opportunity to remove that uncertainty, maintain U.S technology competitiveness, and attract good-paying semiconductor industry jobs by preserving and strengthening the Section 48D tax credit. Our member companies came to Washington today to advocate for this crucial issue to extend and expand the tax credit before the end of the year.”
SEMI’s Request
SEMI's primary request of Congress is a multi-year extension of Section 48D ahead of the December 31, 2026, construction deadline, providing companies the certainty needed to plan, finance, and execute the next wave of U.S. semiconductor investment. SEMI also urged Congress to consider strengthening the credit by expanding eligibility to cover the full semiconductor supply chain, including materials, specialty chemicals and gases, and design activities that are currently excluded.
Why It Matters
Demand for semiconductors continues to accelerate, driven by artificial intelligence, quantum computing, defense, and biomedical applications. SEMI projects that 93 new fabs will come online globally by 2029 and that U.S. investment in front-end fabs and advanced packaging could grow from $24 billion in 2025 to as much as $81 billion annually by 2030 — growth that industry representatives say depends on maintaining a competitive, predictable federal tax incentive.
Major semiconductor producing economies are competing aggressively for that same investment. South Korea offers R&D tax incentives of 30-50% and 20-30% incentives for qualified investment costs across the semiconductor supply chain. Taiwan offers R&D credits of up to 35% for advanced node technologies along with import duty exemptions on specialized equipment. Japan provides a 20% corporate income tax reduction each fiscal year alongside targeted grants. Without comparable certainty in the U.S., industry representatives warned, new projects could increasingly be sited overseas.
“Semiconductor investment is happening on a global scale, and companies are making site-selection decisions right now that will play out over the next decade,” said Stockunas. “Allowing this credit to lapse doesn’t just slow down projects already underway — it risks sending the next wave of investment to countries that are working to attract it.”
