Nation’s top export industry applauds President’s focus on scientific innovation and comprehensive tax reform

WASHINGTON, USA: The Semiconductor Industry Association (SIA), representing U.S. leadership in semiconductor manufacturing and design, and the heartbeat of American innovation, is encouraged and bolstered by President Obama’s State of the Union address this evening.

The President’s focus and attention on science and engineering education, basic research investments, visa reform and comprehensive tax reform as the path to lead our economy toward full recovery and long-term growth is admirable and the SIA pledges to work with Congress and the Administration to achieve these goals.

As America’s number-one export industry, the semiconductor industry has formed the cornerstone of the nation’s innovation economy, as all modern electronic devices and the nation’s vast computing resources all run by leveraging the most up-to-date semiconductor technology. At the crossroads of innovation and manufacturing, this key industry is a foundation of US economic recovery and sustained growth.

As the President noted, basic research investments helped create and fuel the computer chip industry. Future research investments will ensure US leadership in the nanoelectronics age, and at the same time reduce our budget deficits by fostering the leading-edge industries of tomorrow.

“Maintaining America’s lead in semiconductor design and manufacturing is the key to long-term economic success, period. This is why we are pleased to see the Administration intently focused on propelling businesses forward through tax reform, lessening the regulatory burden and spurring the efforts of America’s greatest asset: its scientists and engineers,” said Brian Toohey, president, Semiconductor Industry Association.

“Semiconductor technology represents the heartbeat of today’s economic engine and tomorrow’s most innovative advances, but the industry is facing challenges that we are hopeful will be addressed by this Administration and the Congress, and we look forward to working on these critical issues in the coming months .”

The Semiconductor Industry Association encourages Congress and the Administration to work together to provide long-term federal funding commitments for research and education as well as reform of US tax, regulatory, and workforce policies to bolster economic recovery and ensure future American prosperity. Congress and the Administration must act by:

* Fully funding the America COMPETES Act authorizations beyond fiscal year 2010 by strategically investing in basic research in the physical sciences and improving math and science education;
* Ensuring environmental regulations on the manufacturing industry are not overly burdensome and achieve mutual goals;
* Permanently extending a strengthened R&D tax credit and reforming corporate tax policies to attract multi-billion-dollar semiconductor R&D and manufacturing investments to the United States;
* Reforming US export controls and streamlining the licensing process;
* Ensuring a level playing field for export intensive companies so they are not disadvantaged against foreign competitors in low-tax countries; and
* Reforming visa policies to retain highly educated workers for the American workforce.