The semiconductor industry is heading for a historic policy moment. On May 12, 2026, the Semiconductor Industry Association (SIA) and 17 other major business groups sent a joint letter to Congress urging the extension and expansion of the Advanced Manufacturing Investment Credit (AMIC) — a 25% investment tax credit for chip production facilities established under the CHIPS and Science Act.
The AMIC expires at the end of 2026, and the coalition argues that letting it lapse would undermine hundreds of billions of dollars in private investment already flowing into U.S. semiconductor manufacturing.
What Is the AMIC?
The Advanced Manufacturing Investment Credit (Section 48D of the Internal Revenue Code) gives eligible taxpayers a tax credit of up to 25% of qualified investments in advanced semiconductor manufacturing facilities and equipment. It was designed as a companion to the CHIPS Act's direct subsidies — while CHIPS grants fund specific projects, the AMIC creates a broad incentive for any company investing in U.S. chip production.
Since enactment, the AMIC has helped catalyze what the coalition describes as "hundreds of billions of dollars in private investment" across the U.S. semiconductor ecosystem, including new fabs from TSMC, Samsung, Intel, and dozens of smaller manufacturers.
The Coalition's Two-Part Ask
1. Extend Beyond 2026
Semiconductor fabs take 3-5 years to build and 10-20 years to operate profitably. A tax credit that expires before the first wafers ship from the projects it incentivized sends the wrong signal to investors. The current year-end cliff discourages long-term planning.
2. Expand Beyond Manufacturing
The coalition wants coverage extended to semiconductor design investments — not just production. This aligns with the proposed STAR Act (Supporting Transformative Advancements through Research), which would add R&D and design activities.
The rationale: the semiconductor value chain spans design, manufacturing, packaging, and testing. Incentivizing only manufacturing while design teams move overseas creates an imbalance.
What This Means for Hardware Engineers and PCB Manufacturing
The ripple effects reach far beyond chip fabs:
Downstream PCB demand — Every new semiconductor fab generates sustained demand for PCBs in the products those chips go into, and in the fab equipment itself. Wafer processing tools, test equipment, and clean-room infrastructure all require high-reliability circuit boards.
Material supply chain localization — As more chip manufacturing stays in the U.S., pressure grows to localize supporting materials: PCB substrates, copper-clad laminates, and processing chemicals currently sourced primarily from Asia.
Workforce — Building fabs requires skilled technicians and engineers — the same talent pool that PCB fabrication and electronic assembly compete for.
What Happens If AMIC Expires?
- New projects lose a 25% investment incentive, making U.S. locations less competitive vs. Japan, Korea, and the EU
- Phase 2/3 expansions at sites like TSMC Arizona and Samsung Texas could decelerate
- The policy message shifts from "build here" to "maybe build here, if the economics work without help"
The semiconductor industry's argument is straightforward: you cannot build a decades-long strategic manufacturing capability on a tax credit that expires in seven months.
Sources
- Semiconductor Industry Association, "Top Business Groups Urge Congress to Extend, Expand Successful Semiconductor Tax Credit," May 12, 2026
- Circuits Assembly, May 2026
Originally published at AtlasPCB. AtlasPCB specializes in high-reliability PCB manufacturing for aerospace, medical, and data center applications — learn more.
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