U.S. Reps. Brendan Boyle (D-PA) and Brian Fitzpatrick (R-PA) recently introduced bipartisan, bicameral legislation that would close a gap in U.S. semiconductor policy.
The Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act would provide clear statutory definitions for direct and indirect production materials and would require annual materials qualification lists from the Department of the Treasury and the U.S. Department of Commerce. The bill also would expand the Creating Helpful Incentives to Produce Semiconductors Act tax credit to include upstream materials essential to semiconductor production and would extend the Advanced Manufacturing Investment Credit through 2031.
Currently, China controls up to 85 percent of rare earth element processing and key semiconductor inputs, components that are needed for artificial intelligence computing, clean energy technologies, defense systems, medical devices, and other technologies.
“Pennsylvania is already a national hub for advanced manufacturing, research, and engineering talent — and this legislation builds directly on that strength,” Fitzpatrick said., “As colleagues and proud Pennsylvanians, Congressman Boyle and I are working to bring materials production home, drive new investment into our region, support high-quality jobs, and ensure that Pennsylvania’s workers and industries remain at the forefront of America’s semiconductor future.”
The bill has the support of numerous technology and manufacturing organizations.