Washington, DC - Today, Congressman Michael McCaul (R-TX) and a bipartisan group of members of the House of Representatives introduced 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. "With these incentives in place, America will boost its domestic production of semiconductors and move our nation closer to a secure semiconductor ecosystem that will ensure we remain in control of our supply chain," said McCaul. "Semiconductors are vital to a strong economy, and investments in the advancement of this critical technology will bring jobs and help America lead the world in the development of leading-edge design." 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. Original cosponsors of the bill include Representatives Doris Matsui (D-CA), Mike Kelly (R-PA), Suzan DelBene (D-WA), Elise Stefanik (R-NY), Dan Kildee (D-MI), John Katko (R-NY), Elissa Slotkin (D-MI), and Peter Meijer (R-MI). ### |