MILPITAS, CA – SEMI today announced support for a Congressional bill that would create a 25% federal tax credit for investments in semiconductor manufacturing facilities and equipment, as well as facilities and equipment to produce semiconductor manufacturing tools. The Facilitating American-Built Semiconductors (FABS) Act alternately allows companies to receive the tax credit as a direct payment.

The bill was introduced by senate finance committee chairman Ron Wyden (D-OR) and ranking member Mike Crapo (R-ID), and cosponsored by senators Mark Warner (D-VA), John Cornyn (R-TX.), Debbie Stabenow (D-MI) and Steve Daines (R-MT),

“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 US semiconductor supply chains and help US policies keep pace with incentive proposals around the world,” said Ajit Manocha, president and CEO, SEMI. “As lead times and demand for new tools grow, ensuring upstream tool manufacturers 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.”