Sinema to Commerce & Treasury Secretaries: Consider Semiconductor Supply Chain when Awarding Tax Credits Under CHIPS and Science Law

Dec 1, 2022

Senator shaped into law the CHIPS and Science Act, bipartisan legislation investing in semiconductor manufacturing that strengthens national security and addresses supply chain challenges

WASHINGTON – Arizona senior Senator Kyrsten Sinema, along with a group of senators, urged the U.S. Secretaries of Commerce and Treasury to consider the full semiconductor supply chain when awarding tax credits under the bipartisan CHIPS and Science law.
“While implementing our bipartisan CHIPS and Science law, the Administration must consider the full semiconductor supply chain before awarding tax credits to ensure Arizona semiconductor manufacturers can boost production, prevent supply chain bottlenecks, and reduce prices of goods,” said Sinema.
Sinema’s letter calls on the U.S. Commerce and Treasury Departments to follow Congressional intent while implementing the bipartisan CHIPS and Science law. Sinema and her colleagues urged the Administration not to use a narrow interpretation of the bipartisan law that could result in supply bottlenecks and significant delays in the production of semiconductors. Instead, Sinema and her colleagues are ensuring certain materials used for the manufacturing of semiconductors will be eligible for consideration for both grants and tax benefits – which will support upstream and downstream semiconductor suppliers in Arizona.
The Sinema-backed Chips and Science law provides more than $52 billion to boost domestic semiconductor manufacturing amidst a global semiconductor shortage, reducing reliance on foreign countries like China and enhancing the United States’ global competitiveness. The historic investment will support tens of thousands of jobs in Arizona alone.

Click HERE to read Sinema’s letter.