Press Releases

Today, Representatives Suzan DelBene (WA-01), Vern Buchanan (FL-13), and Terri Sewell (AL-07) introduced the Semiconductor Superiority Act to amend the Section 48D Advanced Manufacturing Investment Credit to explicitly include property and infrastructure for space-based semiconductor manufacturing.

Section 48D of the Internal Revenue Code provides a tax credit to incentivize U.S. semiconductor manufacturing. While Section 48D can be read to include next-generation semiconductor technologies developed in low-Earth orbit, it does not mention them explicitly. This bill clarifies that space-based semiconductor manufacturing technologies qualify for Section 48D, reducing uncertainty for American manufacturers.

Microgravity environments in space enable superior semiconductor fabrication by reducing defects in crystal growth and material deposition that are caused by gravity. These conditions are essential for developing next-generation chips that can power quantum computing, AI, and advanced defense systems. Without policy adaptation, the U.S. risks falling behind global competitors investing in space-based manufacturing. China is currently developing semiconductor materials processes on its Tiangong Space Station, for example.

“The United States must continue leading the way in developing and manufacturing the next generation of advanced semiconductors. We’ve made tremendous progress ramping up domestic capacity through the CHIPS and Science Act, but the semiconductor race is constantly evolving,” said DelBene. “The next frontier of chipmaking is space, where the absence of gravity enables superior semiconductor development. By incentivizing the investment in these critical technologies, the U.S. will continue to shape the future of the global economy. This legislation provides the certainty researchers and innovators need to manufacture cutting-edge semiconductors. This is a smart, forward-looking step that strengthens U.S. leadership and keeps America at the forefront of technological competitiveness.”

“Semiconductor materials manufactured in low-Earth orbit will be a critical component of the next-generation semiconductor chips that will power U.S. leadership in AI, quantum computing and advanced defense systems,” said Buchanan. “My Semiconductor Superiority Act will ensure U.S. companies developing cutting-edge semiconductor technologies in space can access the same incentives already available for semiconductor production here on Earth. It will strengthen Florida’s position as a national leader in the space economy and keep America ahead of China in the race for technological and space dominance. By supporting next-generation semiconductor innovation, we can bolster national security, create high-paying jobs and cement America’s leadership in the industries of the future.”

“Alabama has long been at the forefront of American innovation and advanced manufacturing,” said Sewell. “As our global competitors race to dominate the technologies of the future, Congress must ensure that the United States remains the world leader in semiconductor production, space exploration, and cutting-edge research. The Semiconductor Superiority Act is an investment in American ingenuity that will help strengthen our national security, support high-paying jobs, and position the United States to lead in emerging industries. I’m proud to join my colleagues on this bipartisan legislation to ensure America sets the pace for the next generation of technological innovation.”

The text of the legislation can be found here