Mid-Autumn Festival and National Day Holiday Notice

Introduction and applications of FPC

Introduction of 1N4148, 1N5819, 1N4007 and optional

Texas Instruments introduces new high-accuracy Hall-effect sensor to further simplify current detection

The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer on April 18, applauding the House of Representatives for introducing bipartisan legislation to restore immediate deductibility of R&D investments. Reps. Ron Estes (R-Kan.), John Larson (D-Conn.), and more than 60 bipartisan supporters introduced the American Innovation and R&D Competitiveness Act legislation. A similar bill to restore R&D spending was introduced in the Senate on March 16 by Senators Maggie Hassan (D-N.H.) and Todd Young (R-Ind.), with 20 bipartisan co-sponsors. "R&D is the driving force behind the innovations in semiconductors that drive modern technology and make the world smarter, more efficient, and more connected. The average U.S. semiconductor company spends one-fifth of its revenue on R&D yearly, the highest share of any industry. Restoring longstanding policies that allow for the full and immediate deduction of R&D investments will help expand U.S. R&D and innovations, stimulate economic growth and job creation, and strengthen the U.S. tech workforce." A similar bill to restore R&D spending was introduced in the Senate on March 16 by Senators Maggie Hassan (D-N.H.) and Todd Young (R-Ind.), with 20 bipartisan co-sponsors. "R&D is the driving force behind the innovations in semiconductors that drive modern technology and make the world smarter, more efficient, and more connected. The average U.S. semiconductor company spends one-fifth of its revenue on R&D yearly, the highest share of any industry. Restoring longstanding policies that allow for the full and immediate deduction of R&D investments will help expand U.S. R&D and innovations, stimulate economic growth and job creation, and strengthen the U.S. tech workforce." Since 1954, research and development expenditures are considered an immediate deduction. For decades, the direct deduction for U.S. R&D spending has provided chip companies with long-term incentives to make these investments, helping to maintain U.S. leadership in this important technology area. However, by 2022, R&D expenses in the United States must be amortized over five years, which reduces the attractiveness of R&D in the United States and damages the competitiveness of the domestic semiconductor industry. Even before the amortization requirement, U.S. R&D incentives lag behind global competitors, and if no action is taken to restore the immediate deduction of R&D expenses, the U.S. is expected to fall to the bottom quarter of OECD countries in terms of incentive research one. In addition, research and development costs have increased exponentially, with the most advanced semiconductor node designs costing more than $500 million, twice the cost of previous leading-edge chip designs. To stimulate R&D investment in the U.S. semiconductor industry and allow companies to further innovate and expand the domestic R&D workforce, full and immediate spending is required.

American semiconductor companies want access to the China market despite US government national security concerns and need clear rules from the Biden administration, according to a major industry group. “It’s our biggest market and we’re not the only industry that lays claim to that,” said John Neuffer, the president and chief executive officer of the Semiconductor Industry Association. “Our view is that we need to play in that market.”