Washington, D.C. – Congresswoman Elise Stefanik joined a bipartisan group of colleagues led by Congressman Michael McCaul (R-TX) in introducing the Facilitating American-Built Semiconductors Act or the FABS Act, a bill intended to drive long-term investment into the United States for the design and manufacturing of semiconductor chips.
“Relying on foreign nations for technology critical to the function of our nation is a threat to U.S. economic and national security,” Stefanik said. “This investment in domestic semiconductor manufacturing will create a long-term foundation to secure a domestic semiconductor supply chain, strengthen our economy, and support jobs. Through the incentives in this legislation, the United States can take back control of our semiconductor supply chain.”
The FABS Act would provide a 25 percent investment tax credit (ITC) to semiconductor companies for investments in manufacturing of the technology in the United States. The ITC 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 ITC for companies investing in the research and design of next generation semiconductors. This incentive will help to 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 Communist 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.
Stefanik has been an advocate of incentivizing semiconductor production and has worked to secure provisions in the National Defense Authorization Act for semiconductors and has called for New York to house sites for critical semiconductor programs.