(June 16, 2005) Washington, D.C. &#8212 SEMI is persuading Congress to pass the “Investment in America Act of 2005” (S. 627 & H.R. 1736) to strengthen and permanently extend the R&D tax credit to foster innovation and promote the industry’s continued investment in the research and development of new microelectronics technologies. However, Congress must act fast to secure passage of this legislation to make permanent and strengthen the R&D tax credit, as the current credit is due to expire for the 12th time on December 31, 2005.

Since the industry strongly depends on R&D, SEMI members reportedly face some of the highest R&D costs due to the fast-paced and complex challenges of microelectronics. SEMI member companies spend an average of 15% of their revenues on R&D of advanced semiconductor manufacturing processes and technology. Some industry segments, such as lithography, incur even greater costs.

“The impermanence of the credit makes it difficult for companies to plan long-term R&D,” claims Victoria Hadfield, SEMI North America president. “In a global and highly competitive industry, the R&D tax credit is a strong incentive to foster innovation and technology leadership in the U.S. Rising R&D costs, in the absence of the tax credit, will only encourage companies to move more R&D overseas, creating a negative impact on high-wage job growth and domestic technology innovation.”