R&D Tax Credit Will Keep American Economy Competitive in a Global
Environment
WASHINGTON, Sept. 13 /PRNewswire/ -- Today SEMI member companies have
joined SEMI and over 600 other companies and associations urging Congress
to pass the R&D tax credit extension prior to the election. The current
proposal of the R&D tax credit, which expired on December 31, 2005, would
extend it through 2007, apply it retroactively, and make improvements.
The semiconductor equipment and materials industry is highly dependent
on R&D. SEMI members face some of the highest R&D costs due to the
fast-paced and complex challenges of microelectronics. A recent study
conducted by SEMI, Semiconductor Equipment and Materials: Funding the
Future, found that an industry R&D gap could reach upwards of $9.3 billion
by 2010. On average, SEMI member companies spend 15 percent of their
revenues on R&D for advanced semiconductor manufacturing processes and
technology. Some industry segments, like lithography, incur even greater
costs for R&D.
"As one of the fundamental spurs for our nation's competitiveness, it
is disheartening that Congress has not extended the R&D tax credit," stated
SEMI North America President, Victoria Hadfield. "Other nations have
recognized the economic benefits of an R&D tax credit and have embraced
this critical incentive. The United States must do the same and work to
strengthen and improve the R&D tax credit in future years."
"In order to keep the American economy competitive in a global
environment with rapid economic growth in other nations, we must invest in
initiatives that will provide long-term benefits such as education, tax
incentives, and R&D." Hadfield continued, "SEMI strongly urges Congress to
enact the R&D tax credit prior to the election to allow companies to take
credit for their R&D and to provide them with this valuable tool to keep
America competitive."
SEMI is a global industry association serving companies that provide
equipment, materials and services used to manufacture semiconductors,
displays, nano-scaled structures, micro-electromechanical systems (MEMS)
and related technologies. SEMI maintains offices in Austin, Beijing,
Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Shanghai, Singapore,
Tokyo and Washington, D.C. For more information, visit http://www.semi.org .
SOURCE SEMI
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Related links:
http://www.semi.org
CONTACT:
Ken Schramko, +1-202-289-0440, or
kschramko@semi.org, or Scott Smith, +1-408-943-7957, or
ssmith@semi.org, both of SEMI
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