“The CHIPS Act invests more than $52 billion in American chip production and semiconductor fabrication.
By JODIE NEWELL | PinalCentral
A federal law designed to provide tax relief and other incentives for the U.S. semiconductor industry will have significant ramifications for the burgeoning local industry, officials believe.
The Creating Helpful Incentives to Produce Semiconductors, or CHIPS, for America Act received solid bipartisan and bicameral support in Congress last week, with the House voting for it 243-187 and the Senate 64-33.
The CHIPS Act is intended to create investments and incentives to support semiconductor supply chain security, manufacturing and research and development in the United States. The provision of income tax credits for semiconductor equipment or manufacturing facility investment through 2026 is also a key component.
The act allows for the creation of a trust fund to be allocated upon reaching agreement with foreign government partners to promote consistency in policies related to microelectronics, transparency in microelectronic supply chains and alignment in policies towards non-market economies.
U.S. Rep. Tom O’Halleran, R-Ariz., said passing the bill will help address supply chain issues in the electronics industry but more importantly will help bolster the growing semiconductor industry in Arizona.
“The CHIPS Act invests more than $52 billion in American chip production and semiconductor fabrication,” he said. “The state of Arizona is home to a massive growing chip manufacturing industry providing over 28,000 good-paying jobs and turbocharging the state’s economy. This bill makes long-overdue investments in research and development and bolsters 21st century innovation and manufacturing.”
Casa Grande Mayor Craig McFarland, who had traveled to Washington, D.C. in May to lobby federal representatives, said the legislation will push the local semiconductor industry into high gear.
“It’s certainly going to be significant for Arizona and Casa Grande,” remarked McFarland. “This action by Congress is historic. It’s so important for the U.S. economy and especially Arizona’s economy.
