U.S. Senators Marsha Blackburn, Michael Bennet, Thom Tillis, and Chris Coons have introduced the Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act. The proposed legislation aims to extend tax incentives for semiconductor facilities to include upstream materials suppliers. This initiative seeks to bolster U.S. defense supply chains by promoting domestic investment and reducing dependence on foreign entities such as China.
Senator Blackburn highlighted China’s increased semiconductor production, stating, “Over the past few years, Communist China has dramatically ramped up its production of semiconductors, which power everything from cell phones to computers to trains.” She added that the SEMI Investment Act would support domestic investment and enhance supply chain security.
Senator Bennet remarked on the need for continued investment across the semiconductor supply chain: “The CHIPS and Science Act revitalized advanced domestic manufacturing and restored funding for cutting-edge research and development. But without sustained investment across the semiconductor supply chain, we risk undermining these important efforts.” He emphasized that the SEMI Investment Act would secure supply chains and facilitate U.S. production expansion.
Senator Tillis pointed out the importance of a robust domestic semiconductor supply chain for national security: “Congress passed the CHIPS Act to support our entire domestic semiconductor supply chain. It is crucial for our national security and economic resilience that we get this policy right.”
Senator Coons stressed the significance of semiconductors in various industries: “Semiconductors drive everything from smartphones to medical devices to automobiles, and countries that excel at manufacturing them will be stronger and more secure in the decades ahead.” He noted that expanding tax credits would strengthen U.S. semiconductor supply chains.
China’s dominance in global processing capacity for rare earth minerals used in semiconductors is a concern addressed by this bill. Recent Chinese export bans on essential materials like gallium highlight vulnerabilities in current U.S. supply chains reliant on foreign sources.
The SEMI Investment Act proposes expanding tax credits beyond direct semiconductor production facilities to include upstream material suppliers. This expansion aims to foster innovation, job creation, and industry resilience within the United States.
