Michael T. McCaul

07/31/2024 | Press release | Distributed by Public on 07/31/2024 09:01

McCaul, Moore, DelBene, Matsui Introduce Bipartisan Legislation to Drive American Leadership in Semiconductor R&D

Washington, D.C. - This week, U.S. Congressman Michael McCaul (R-Texas), House Republican Conference Vice Chairman Blake Moore (R-Utah), Representatives Suzan DelBene (D-Wash.), and Doris Matsui (D-Calif.) introduced the Semiconductor Technology Advancement and Research (STAR) Act.

This legislation was co-sponsored by the House Select Committee on Strategic Competition Between the United States and the Chinese Communist Party Chairman John Moolenaar (R-Mich.), Ranking Member Raja Krishnamoorthi (D-Ill.), and Representatives Claudia Tenney (R-N.Y.), Rho Khanna (D-Calif.), and Joe Morelle (D-N.Y.).

"U.S. production of semiconductor chips is an economic and national security imperative, which is why I authored the CHIPS for America Act - to decrease our reliance on other countries for these critical assets," said Rep. McCaul. "I am proud to co-sponsor the bipartisan STAR Act to build on that success, further bolstering our national security and bringing high-paying jobs to our communities. The chip revolution is the greatest technological advancement since the Manhattan Project, and I look forward to cementing the United States as the global leader in semiconductor research and design."

"Semiconductors are the lynchpin to the technologies of the future in countless sectors, from health care to defense to energy, and they are critical to U.S. national security and global competitiveness," said Rep. Moore. "I am proud to introduce the STAR Act with a bipartisan group of colleagues to create an investment incentive to enhance U.S. leadership in chip design and maintain a secure value chain for these innovations."

"Semiconductors are critical to our economy, powering everything from cars to cellphones," said Rep. DelBene. "Congress made great strides forward with the passage of the Chips & Science Act, but we need to continue investing in domestic chip production to ensure that America remains a global leader in this critical economic and national security technology. The bipartisan legislation we're introducing today will support further semiconductor research and workforce development, strengthen our economic security, reduce reliance on foreign supply chains, all while creating good-paying jobs in our communities."

"As we roll out the transformative investments of the CHIPS Act, we have a unique opportunity to lay the groundwork for generational leadership in semiconductor innovation and job creation," said Rep. Matsui. "But for lasting American progress, we need to revitalize the entire supply chain: from semiconductor design through manufacturing. This legislation will supercharge high-wage jobs in semiconductor design which are vital for the California economy. In tandem with CHIPS Act investments, these tools will continue to secure American's position as the global pacesetter for innovation."

"This legislation will help America's tech sector maintain its leading role and ensure our national security is protected," said Chairman Moolenaar. "Our country is the best in the world in semiconductor innovation, and today's bill will help levelthe playing field for American companies competing against the Chinese Communist Party's state subsidies and theft of American intellectual property."

"As semiconductors increasingly drive the future of the global economy, it is essential that the United States strengthens our domestic semiconductor industry, including our research and development capacity," said Ranking Member Krishnamoorthi. "Through providing incentives for investments in American semiconductor R&D, our bipartisan legislation will help ensure continued U.S. leadership in chip design, strengthening our national and economic security."

Background:

Rep. McCaul first introduced the CHIPS for America Act in 2020, alongside Representative Doris Matsui (D-Calif.) and Senators John Cornyn (R-Texas) and Mark Warner (D-Va.), to increase domestic production of semiconductor chips. The bill was signed into law in August of 2022, and companies have since invested nearly $450 billion in the semiconductor industry here in the U.S.

The STAR Act would build on the CHIPS Act by establishing a 25% tax credit for semiconductor design expenditures, ensuring the U.S. leads not only in chip production, but also in research and development.

Click here for full text of the STAR Act.

###