ITIF Urges Passage of the CHIPS-Plus Act to Bolster U.S. Competitiveness

WASHINGTON—Following the release of the substitute amendment for the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act, which also includes elements of the Facilitating American-Built Semiconductors (FABS) Act legislation from Sen. Chuck Schumer (D-NY), the Information Technology and Innovation Foundation (ITIF), the world’s leading think tank for science and technology policy, released the following statement from ITIF vice president for global innovation policy Stephen Ezell:

ITIF applauds this important step toward passing much-needed legislation to bolster the competitive position of America’s semiconductor industry, and calls on Congress to pass this legislation and bring it to the President’s desk within a week.

The United States has lost nearly 70 percent of its global share of semiconductor manufacturing capacity over the past three decades, taking its share down to just 12 percent. The CHIPS Act would provide $52 billion to stimulate U.S. semiconductor industry competitiveness, including $13 billion for R&D and $39 billion in grants to level the global playing field in terms of incentive packages nations offer to attract high-value-added semiconductor manufacturing activity. In addition, the FABS Act would stimulate further U.S. semiconductor sector investment by providing a 25 percent investment tax credit for manufacturing semiconductor equipment and constructing manufacturing facilities. The CHIPS and FABS Acts are needed to arrest America’s recent decline and restore domestic production of a critical technology indispensable to both U.S. national and economic security.