SHORT TITLE

This Act may be cited as the ‘‘Strengthening Essential Manufacturing and Industrial Investment Act’’ or the ‘‘SEMI Investment Act’’.

EXPANSION OF ADVANCED MANUFACTURING INVESTMENT CREDIT

Section 48D(b) of the Internal Revenue Code of 1986 is amended to include materials integral to semiconductor manufacturing.

• ADVANCED MANUFACTURING FACILITY

  For purposes of this section, the term ‘advanced manufacturing facility’ means a facility for which the primary purpose is the manufacturing of:

  • semiconductors,
    semiconductor manufacturing equipment,
    or semiconductor materials.

• SEMICONDUCTOR MATERIALS

  The term ‘semiconductor materials’ means:

  • Direct production material, or
    Indirect production material used in semiconductor manufacturing (as defined in section 231.116 of title 15, Code of Federal Regulations).

  DIRECT PRODUCTION MATERIAL

  Direct production material means a material which is:

  1. Primarily used for, and integral to, the production of a semiconductor,
  2. Physically incorporated into a finished semiconductor,
  3. Any of the following:
     • Substrate: Any substrate of silicon, silicon carbide, gallium nitride, gallium arsenide, indium phosphide, or other semiconductor-grade substrate material.
     • Htin film or layering material: Any deposited metal, dielectric, barrier material, or dopant that forms the physical structure of a semiconductor.
     • Packaging substrate material: Any ceramic, organic, or metallic material that forms the physical base for semiconductor packaging.

  INDIRECT PRODUCTION MATERIAL

  Indirect production material means a material which is:

  1. A specialized material primarily used for, and integral to, the production, testing, inspection, or packaging of a semiconductor,
  2. Not physically incorporated into a finished semiconductor,
  3. Any of the following:
     • Process chemicals: An etchant, deposition precursor, doping gas, or other chemical used in wafer fabrication.
     • Photoresist: Photoresist, photoresist ancillary material, developer, mask, or pellicle used in semiconductor patterning.

EFFECTIVE DATE

The amendment made by this section shall apply to property placed in service after the date of enactment of this Act.