SEMI Pushes Congress to Extend Semiconductor Investment Tax Credit Before Year-End Deadline

SEMI, the trade association representing the semiconductor and electronics manufacturing supply chain, brought executives from member companies to Washington for meetings with lawmakers aimed at extending a key federal tax credit for U.S. semiconductor investment. As part of what the organization called its Tax Day event, industry representatives met with members of Congress, including those on the House Ways and Means and Senate Finance Committees, to push for a multi-year extension of the Section 48D Advanced Manufacturing Investment Credit before it expires at the end of this year.

The credit, established under the CHIPS and Science Act, offers a refundable 35% tax credit for qualifying investment in semiconductor manufacturing facilities and equipment, and SEMI says it has helped drive hundreds of billions of dollars in announced U.S. semiconductor investment spread across 28 states. Under current law, facilities need to begin construction by December 31, 2026, to qualify, a deadline SEMI argues doesn't match up with how long it actually takes to site, permit, finance, and build a semiconductor facility, projects that typically span multiple years.

Joe Stockunas, president of SEMI Americas, said the tax credit has been one of the most effective tools the country has for attracting semiconductor investment, and that its looming expiration is creating real un...