Washington, D.C. — U.S. Senators Michael Bennet (D-Colo.), Marsha Blackburn (R-Tenn.), Thom Tillis (R-N.C.), and Chris Coons (D-Del.) introduced the bipartisan Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act to expand tax incentives for semiconductor facilities to include upstream materials suppliers. This bill will bolster U.S. supply chains by supporting investment in domestic production and reducing reliance on strategic adversaries like China.
“The CHIPS and Science Act revitalized advanced domestic manufacturing and restored funding for cutting-edge research and development. But without sustained investment across the semiconductor supply chain, we risk undermining these important efforts,” said Bennet. “Our bipartisan bill will secure our supply chains and ensure companies across the semiconductor ecosystem can invest in and expand U.S. production.”
“Communist China has rapidly increased its grip on semiconductor production, threatening America’s economy and national security,” said Blackburn. “The SEMI Investment Act would boost manufacturing here in the United States and help secure our supply chains by expanding tax incentives for semiconductor facilities to reduce our dependence on Beijing.”
“The U.S. must do everything we can to strengthen the domestic semiconductor supply chain,” said Tillis. “It is crucial for our national security and economic resilience that we get this policy right and I am proud to cosponsor this legislation to ensure we reduce our reliance on our adversaries like China.”
“Semiconductors drive everything from smartphones to medical devices to automobiles, and countries that excel at manufacturing them will be stronger and more secure in the decades ahead,” said Coons. “Expanding the semiconductor manufacturing investment tax credit—established by President Biden’s CHIPS and Science Act—will strengthen our semiconductor supply chain and advance us toward that goal.”
Currently, China’s companies control nearly 85% of global processing capacity for rare earth minerals used in semiconductor manufacturing. Last month, China imposed new export bans on rare earth materials like gallium, germanium, and antimony, which are key to semiconductor production.
Under current law, tax incentives are available only for facilities that directly produce semiconductors or manufacturing equipment. However, many upstream materials and components used in these facilities are sourced from China, leaving critical U.S. supply chains vulnerable and reliant on foreign competitors.
To safeguard national security and counter China’s growing dominance in the semiconductor sector, the SEMI Investment Act will promote the development of a robust U.S.-based supply chain by expanding the tax credit to include upstream materials suppliers. Expanding incentives to include upstream production will also bolster American innovation, create jobs, and strengthen the semiconductor industry.
Bennet has consistently fought to strengthen U.S. national security by countering China’s attempted domination of critical sectors, including by bolstering domestic semiconductor manufacturing. In March, Bennet introduced the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act to limit American investments in certain sensitive technologies in China, including semiconductors. Bennet also helped pass the CHIPS and Science Act in 2022 to boost the domestic semiconductor industry, fund the largest five-year investment in public research and development in U.S. history, and create regional technology hubs nationwide. Additionally, Bennet leads the Americas Act, the only major strategic economic plan to counter China’s geopolitical and economic influence in the Western Hemisphere.
Colorado’s extensive advanced technology ecosystem and high-skilled workforce have helped the state attract several investments from the CHIPS and Science Act, including $77 million through the U.S. Department of Commerce to help Colorado Springs-based Entegris expand its advanced technology manufacturing facility, which Bennet welcomed in December 2024, and $40.5 million for Colorado’s quantum Tech Hub, Elevate Quantum.
The text of the bill is available HERE.