Press Releases

DelBene, Bipartisan Members Introduce Bill to Boost Domestic Chip Production

Today, Representatives Suzan DelBene (WA-01), Michael McCaul (TX-10), and a bipartisan group of representatives introduced the Facilitating American-Built Semiconductors (FABS) Act to drive the long-term investment of designing and manufacturing of semiconductor chips in the U.S. 

The FABS Act would provide a 25-percent investment tax credit to semiconductor companies for investments in manufacturing of the technology in the United States. The credit 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 tax credit for companies investing in the research and design of next-generation semiconductors. This incentive will help ensure America continues to lead the world in semiconductor design. 

“Semiconductors are critical to our economy, making everything from cars to cellphones work properly. The disruption to the semiconductor industry caused by the pandemic underscores why America needs to once again be a leader in producing these chips at home,” said DelBene. “The bipartisan legislation we are introducing today would incentivize semiconductor production and make us less reliant on foreign supply chains. This would be a huge step in easing long-term inflation pressures and creating many good-paying American jobs.” 

As Americans experienced during the pandemic, reliance on other countries for critical materials and technology is a vulnerability in our national security. Semiconductors are in everything from smartphones and vehicles to the most advanced weapons systems, and they play a role in the lives of every American. For decades, U.S. domestic 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 China have provided incentives to companies that 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.

The text of the bill can be found here.