The SEMI Investment Act expands and extends a federal tax credit for advanced manufacturing facilities by broadening the definition of eligible projects to include manufacturers of semiconductor materials, not just semiconductors and semiconductor equipment themselves. The bill specifies which materials qualify for the credit, including both "direct production materials" (like substrates and bonding materials physically incorporated into semiconductors) and "indirect production materials" (like chemicals, photoresists, and testing equipment used in manufacturing but not in the final product). The Treasury Department must publish a list of qualifying materials within 180 days of the bill's enactment and update it annually, with a process for companies to petition for materials not yet listed. The legislation extends the credit's expiration date from December 31, 2026 to December 31, 2031, with new property construction deadlines aligned to this extended timeline. This change primarily affects domestic semiconductor supply chain companies and materials suppliers seeking federal tax incentives to invest in U.S. manufacturing capacity.
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