Kelly and Bipartisan Members Introduce Facilitating American-Built Semiconductors Act

Washington, D.C. -  Today, U.S. Rep. Mike Kelly (R-PA), Co-Chair of the House Auto Caucus, 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. 

"This is a matter of national security. Building semiconductor chips here in America strengthens the U.S. supply chain, lessens our reliance on foreign products, and creates more jobs here at home," Kelly said. "The auto industry -- heavily reliant on semiconductor chips -- has been the heart and soul of America for over a century. This pro-growth legislation is a win-win and will help to ensure that can continue for the next century to come."
 
The FABS Act would provide a 25 percent refundable investment tax credit (RITC) to semiconductor companies for investments in manufacturing of the technology in the United States. The RITC 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 RITC 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 Michael McCaul (R-TX), Doris Matsui (D-CA), 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).