MILPITAS, CA – SEMI president and CEO Ajit Manocha supports amendments the US House of Representatives and Senate included in the 2021 National Defense Authorization Act that would authorize important programs to support semiconductor manufacturing and research in the US.

“SEMI is very pleased the House and Senate included in the NDAA provisions to support semiconductor manufacturing and research in the United States,” Manocha said. “The US has not kept pace with the growth of semiconductor manufacturing abroad. The US share of global semiconductor manufacturing capacity has been cut in half to just 12% over the past 20 years and is forecast to fall to 10% by 2023. We applaud the sponsors for their support, leadership and hard work to win House and Senate approval to increase federal government support for the industry. However, this is just the start of what needs to be done to reverse this 20-year decline. The CHIPS for America Act’s investment tax credit for new and expanded semiconductor manufacturing facilities is essential to provide a robust, transparent and reliable federal incentive that will be the foundation of renewed growth of US fabs.”

In addition to authorizing a grant program, the House and Senate amendments would direct the Defense Department to create programs with the private sector to encourage the development of advanced, measurably secure microelectronics; establish a multilateral microelectronics security fund the US and its allies will use to reach agreements promoting consistency in policies related to microelectronics; direct the president to establish a subcommittee on semiconductor technology and innovation within the National Science and Technology Council; and direct the Secretary of Commerce to establish a national semiconductor technology center.

The House amendment would authorize an additional $1.2 billion for semiconductor research. The House and Senate are expected to pass the NDAA bills this week.

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