WASHINGTON, D.C. – U.S. Representative Peter Meijer (R-MI) and a bipartisan group of his colleagues today introduced the Facilitating American-Built Semiconductors (FABS) Act, a bill intended to drive long-term investment into the United States for the design and manufacturing of semiconductor chips.
“We must work to put our country in a position to maintain control of our supply chain,” said Rep. Meijer. “Michigan has a proud manufacturing history and stands ready to support our ongoing domestic manufacturing needs, including for semiconductor chips. The FABS Act will help make Michigan and the U.S. more competitive in the global manufacturing economy. I am proud to help lead this bipartisan effort to boost our domestic production of semiconductors and strengthen our economy.”
The FABS Act would provide a 25 percent investment tax credit (RITC) to semiconductor companies for investments in manufacturing of the technology in the United States. The RITC could cover building costs for a semiconductor manufacturing facility or the semiconductor manufacturing equipment that would produce the chips. Additionally, the bill would provide a 25 percent RITC for companies investing in the research and design of next generation semiconductors. This incentive will help ensure America continues to lead the world in semiconductor design.
As Americans experienced during the pandemic, reliance on adversaries for critical materials or technology is a vulnerability to our national security. Semiconductor chips are in everything from smartphones and vehicles to the most advanced weapons systems, and they play a role in the life of every American. For decades, American manufacturing of semiconductors has slowly decreased, while reliance on foreign nations for this critical technology has increased. As global competitiveness for semiconductor control has intensified, countries like China have provided incentives to draw companies to manufacture semiconductors on their soil.
With the introduction of the FABS Act and other programs in place, America can provide a comprehensive package of incentives that will keep us competitive on a global scale, secure our access to this critical technology, and advance American leadership in the research and design of leading-edge chips.
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