SEMI Urges Congress to Extend Semiconductor Investment Tax Credit

SEMI brought together executives from member companies for advocacy meetings on Capitol Hill focused on extending the tax credit for investments in building up the U.S. semiconductor ecosystem. 

As part of the SEMI Tax Day event, industry representatives are meeting with Members of Congress, including those serving on the House Ways and Means and Senate Finance Committees, to urge swift passage of a multi-year extension of the Section 48D Advanced Manufacturing Investment Credit (AMIC) before it lapses at the end of the year.

Enacted under the CHIPS and Science Act, the Section 48D credit provides a refundable 35% tax credit for qualified investment in semiconductor and semiconductor manufacturing equipment facilities. It has helped catalyze hundreds of billions of dollars in announced U.S. semiconductor investment across 28 states. 

Under current law, facilities must begin construction by December 31, 2026, to qualify — a deadline SEMI says is out of step with the ongoing need for semiconductor ecosystem expansion and the multi-year timelines required to site, permit, finance, and build a semiconductor facility.

SEMI’s primary request of Congress is a multi-year extension of Section 48D ahead of the December 31, 2026, construction deadline, providing companies the certainty needed to plan, finance, and execute the next wave of U.S. semiconductor investment. SEMI also urged Congress to consider strengthening the credit by expanding eligibility to cover the full semiconductor supply chain, including materials, specialty chemicals and gases, and design activities that are currently excluded.

“Semiconductor investment is happening on a global scale, and companies are making site-selection decisions right now that will play out over the next decade,” said Joe Stockunas, President, SEMI Americas. “Allowing this credit to lapse doesn’t just slow down projects already underway — it risks sending the next wave of investment to countries that are working to attract it.”