MATSUI, MOORE, AND COLLEAGUES INTRODUCE BIPARTISAN LEGISLATION TO DRIVE AMERICAN LEADERSHIP IN SEMICONDUCTOR R&D
WASHINGTON, D.C. – Today, Congresswoman Doris Matsui (D-CA), co-author of the Creating Helpful Incentives for the Production of Semiconductors (CHIPS) for America Act, and Reps. Blake Moore (R-UT), Michael McCaul (R-TX), and Suzan DelBene (D-WA) introduced the Semiconductor Technology Advancement and Research (STAR) Act, a bipartisan piece of legislation that will advance U.S. semiconductor research and development initiatives by creating an investment tax credit for semiconductor design expenditures.
“As we roll out the transformative investments of the CHIPS Act, we have a unique opportunity to lay the groundwork for generational leadership in semiconductor innovation and job creation,” said Congresswoman Matsui. “But for lasting American progress, we need to revitalize the entire supply chain: from semiconductor design through manufacturing. This legislation will supercharge high-wage jobs in semiconductor design which are vital for the California economy. In tandem with CHIPS Act investments, these tools will continue to secure American’s position as the global pacesetter for innovation.”
“Semiconductors are the lynchpin to the technologies of the future in countless sectors, from health care to defense to energy, and they are critical to U.S. national security and global competitiveness,” said Congressman Moore. “I am proud to introduce the STAR Act with a bipartisan group of colleagues to create an investment incentive to enhance U.S. leadership in chip design and maintain a secure value chain for these innovations.”
“U.S. production of semiconductor chips is an economic and national security imperative, which is why I authored the CHIPS for America Act — to decrease our reliance on other countries for these critical assets,” said Chairman McCaul. “I am proud to co-sponsor the bipartisan STAR Act to build on that success, further bolstering our national security and bringing high-paying jobs to our communities. The chip revolution is the greatest technological advancement since the Manhattan Project, and I look forward to cementing the United States as the global leader in semiconductor research and design.”
“Semiconductors are critical to our economy, powering everything from cars to cellphones. Congress made great strides forward with the passage of the Chips & Science Act, but we need to continue investing in domestic chip production to ensure that America remains a global leader in this critical economic and national security technology,” said Congresswoman DelBene. “The bipartisan legislation we’re introducing today will support further semiconductor research and workforce development, strengthen our economic security, reduce reliance on foreign supply chains, all while creating good-paying jobs in our communities.”
Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party are original cosponsors.
“This legislation will help America’s tech sector maintain its leading role and ensure our national security is protected. Our country is the best in the world in semiconductor innovation, and today’s bill will help level the playing field for American companies competing against the Chinese Communist Party’s state subsidies and theft of American intellectual property,” said Chairman Moolenaar.
“As semiconductors increasingly drive the future of the global economy, it is essential that the United States strengthens our domestic semiconductor industry, including our research and development capacity. Through providing incentives for investments in American semiconductor R&D, our bipartisan legislation will help ensure continued U.S. leadership in chip design, strengthening our national and economic security,” said Ranking Member Krishnamoorthi.
Background:
Semiconductor design is a research and development activity that works to improve how chips process information and enable increasingly complex modern technologies. The STAR Act would allow for a 25% tax credit for semiconductor design research and development expenditures. Semiconductors drive American technological leadership, which is critical to nearly every industry, including defense, health care, energy, agriculture, and transportation. As countries around the world continue to out-invest the United States in semiconductor research and development, the STAR Act will ensure semiconductor IP originates in the United States and is secure.
The text of this legislation can be found here.
Congresswoman Matsui introduced the original CHIPS Act in June 2020 alongside Congressman McCaul and Senators John Cornyn (R-TX) and Mark Warner (D-VA). She successfully included an amendment based on the CHIPS Act as part of the FY21 National Defense Authorization Act (NDAA) to enable the building and modernization of semiconductor manufacturing facilities in America. She also led efforts to secure this funding through the CHIPS and Science Act.
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