A bipartisan group of US lawmakers has put forth the Semiconductor Superiority Act to enhance semiconductor manufacturing in space. This legislation aims to ensure that semiconductor facilities in low-Earth orbit can receive tax incentives under the CHIPS and Science Act. Advocates believe this move is crucial for the US to stay competitive with China in advanced technology.
The proposed act seeks to provide clarity for companies investing in microgravity-based semiconductor production. Lawmakers argue that China has already integrated space-based chip fabrication into its supply chain, posing a risk to the US’s global competitive edge. Senator Ted Budd emphasized the importance of domestic manufacturers developing microgravity semiconductor technology to rival China.
The legislation would amend the Internal Revenue Code to allow advanced manufacturing facilities in outer space, including low-Earth orbit, to qualify for federal advanced manufacturing investment tax credits. Proponents of the bill suggest that manufacturing semiconductors in microgravity could enhance production efficiency and yields by reducing defects in crystal growth and material deposition.
Senator Michael Bennet highlighted the urgency for the US to act swiftly amidst increasing global competition. He emphasized Colorado’s aerospace industry as a key player in space-based semiconductor manufacturing due to its talent and research institutions. Bennet stressed the need to protect the US’s competitive edge and drive innovation by passing this bipartisan bill into law.
Companion legislation has also been introduced in the House of Representatives by a bipartisan group led by Representatives Vern Buchanan, Terri Sewell, and Suzan DelBene. Sewell noted that the Semiconductor Superiority Act would bolster US leadership in advanced manufacturing and space technology. DelBene described space as the next frontier for semiconductor production, emphasizing the importance of incentivizing investment in critical technologies to shape the global economy’s future.
The bill specifies that equipment and infrastructure supporting semiconductor manufacturing facilities in space would be eligible for tax incentives. However, rockets and launch vehicles used for carrying payloads into orbit would not qualify for the credit program. The legislation reflects the escalating competition between Washington and Beijing in advanced technologies, including semiconductors, artificial intelligence, quantum computing, and space systems. US policymakers view semiconductor production as a strategic national security concern due to the vital role of advanced chips in military systems, communications networks, and next-generation computing.
