Semiconductor Industry Urges U.S. Policy Support for Growth
Washington, Saturday, 22 February 2025.
The Semiconductor Industry Association emphasizes investment in U.S. semiconductor manufacturing to boost global competitiveness, with nearly half-a-trillion dollars committed by industry players.
Investment and Market Outlook
In a significant statement released on February 21, 2025, SIA President and CEO John Neuffer highlighted the semiconductor industry’s position as the sixth-largest U.S. export sector [1]. The industry is demonstrating unprecedented commitment to domestic manufacturing, with projections indicating global semiconductor demand will exceed $1 trillion by 2030 [2]. This growth trajectory comes as companies are actively investing in U.S.-based manufacturing facilities, aiming to strengthen supply chains and create high-paying American jobs [1].
Policy Initiatives and Industry Support
Recent policy developments have shown strong bipartisan support for the semiconductor sector. The introduction of the Semiconductor Technology Advancement and Research (STAR) Act in January 2025 represents a crucial step forward [3]. This legislation builds upon the existing Advanced Manufacturing Investment Credit (AMIC), which provides a 25% tax credit for semiconductor investments [3]. The industry’s response has been notably positive, with SIA releasing a comprehensive policy agenda titled ‘Winning the Chip Race’ to outline collaboration priorities with the current administration [3].
Industry Collaboration and Growth
The semiconductor industry’s unified approach is evident in recent developments, such as EETech Group’s strategic membership in the SIA [2]. This partnership strengthens the industry’s collective voice, representing 99% of U.S. semiconductor revenue [1]. Through this coalition, the sector is actively working to address critical challenges including supply chain resilience and manufacturing capacity expansion. EETech Group’s global reach of over 2.5 million engineers and industry professionals significantly enhances the industry’s ability to disseminate crucial information and foster collaboration [2].
Trade Policy Implications
While supporting the administration’s goal of enhancing U.S. trade leadership, the SIA has expressed careful consideration regarding trade policy tools. Neuffer emphasized that while tariffs are available as a policy instrument, they must be implemented thoughtfully to avoid increasing costs for American semiconductor production and critical technologies, particularly in artificial intelligence applications [1]. The industry continues to advocate for mutually advantageous bilateral trade negotiations and targeted tax incentives that support domestic manufacturing while maintaining global competitiveness [1].