New U.S. Bill Proposes Bigger Tax Credit to Boost Chip Manufacturing
Photo Credit: @SIAAmerica
The Semiconductor Industry Association (SIA) has welcomed a new bill introduced in the U.S. House of Representatives that aims to boost domestic semiconductor manufacturing. The bill, called the Building Advanced Semiconductors Investment Credit (BASIC) Act, proposes to increase the Advanced Manufacturing Investment Credit (AMIC) from 25% to 35% and extend it for four more years. It was introduced by Representative Claudia Tenney (R-NY) along with bipartisan support from 19 other lawmakers.
SIA President and CEO John Neuffer praised the move, stating that increasing and extending the credit will drive more investment into America’s semiconductor sector. He added that this proposal is essential for helping the U.S. stay competitive in the global chip race, especially if the credit is also expanded to include semiconductor research and design.
Since 2017, over 100 semiconductor-related projects have been announced in 28 states, bringing in more than $540 billion in private investments and supporting over 500,000 jobs.
The Semiconductor Technology Advancement and Research (STAR) Act was introduced earlier this year to extend AMIC for 10 years and expand it to cover chip R&D.
The SIA’s 2025 policy agenda urges Congress to renew and expand AMIC before it expires next year. It also calls for broader coverage of the credit, including critical supply chain elements like semiconductor-grade polysilicon and chip design, to strengthen U.S. technology leadership and innovation.
