Bipartisan bill aims at boosting US leadership in semiconductor R&D

This week, U.S. Congressman Michael McCaul (R-Texas), House Republican Conference Vice Chairman Blake Moore (R-Utah), Representatives Suzan DelBene (D-Wash.), and Doris Matsui (D-Calif.) introduced the Semiconductor Technology Advancement and Research (STAR) Act.

The legislation is co-sponsored by the House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party Chairman John Moolenaar (R-Mich.), Ranking Member Raja Krishnamoorthi (D-Ill.), and Representatives Claudia Tenney (R-N.Y.), Rho Khanna (D-Calif.), and Joe Morelle (D-N.Y.).

"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 Rep. 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 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 Rep. 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."

"Semiconductors are critical to our economy, powering everything from cars to cellphones," said Rep. DelBene. "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. 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."

"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 Rep. 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."

"This legislation will help America’s tech sector maintain its leading role and ensure our national security is protected," said Chairman Moolenaar. "Our country is the best in the world in semiconductor innovation, and today’s bill will help levelthe playing field for American companies competing against Chinese Communist Party’s state subsidies and theft of American intellectual property."

"As semiconductors increasingly drive future of global economy it is essential that United States strengthens domestic semiconductor industry including research development capacity," said Ranking Member Krishnamoorthi."Through providing incentives investments American semiconductor R&D bipartisan legislation help ensure continued U.S.leadership chip design strengthening national economic security."

Background:

Rep.McCaul first introduced CHIPS America Act 2020 alongside Representative Doris Matsui(D-Calif.) Senators John Cornyn(R-Texas) Mark Warner(D-Va.) increase domestic production semiconductor chips.The bill was signed into law August 2022 companies have since invested nearly $450 billion semiconductor industry here U.S.

The STAR Act would build on CHIPS Act by establishing 25% tax credit for semiconductor design expenditures ensuring U.S.leads not only chip production also research development.

Click here full text STAR Act.