June 17, 2021

Anna Murray 

A bilateral group of U.S. senators came up with a proposal on June 17th for a 25% tax credit for semiconductor manufacturing investments in the country, which is an additional plan approved on June 8th for investing $52 billion on production and research on semiconductors and telecommunications equipment.

According to the supporters of funding, the market share of semiconductors and microelectronics production in the U.S. has decreased to 12% from 37% in 1990.

Gina Raimondo, U.S. Commerce Secretary, estimated that the funding will generate 7 to 10 new U.S. semiconductor manufactories and lead to over 150 billion in chip production and research investment.

The Semiconductor Industry Association also approved of this proposal, as they believed domestic chip production and research is significant to U.S. employment, national defense, infrastructure, and semiconductor supply chains.

Photo:webshot.