Latest news with #Section48D
Cision Canada
09-05-2025
- Business
- Cision Canada
SEMI Applauds New Bill to Clarify Tax Credit Eligibility for Critical Semiconductor Suppliers Under U.S. CHIPS Act
MILPITAS, Calif., /CNW/ -- SEMI, the industry association serving the global semiconductor and electronics design and manufacturing supply chain, today announced support of the Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act), which clarifies that critical materials suppliers to semiconductor manufacturers are eligible for the Advanced Manufacturing Investment Tax Credit ("Section 48D") created by the United States CHIPS and Science Act. Introduced by Senators Marsha Blackburn (R-Tenn.), Michael Bennet (D-Colo.), Thom Tillis (R-NC) and Chris Coons (D-Del.), the SEMI Investment Act would help make semiconductor materials an equal part of America's investment in advanced semiconductors and contribute to a secure, domestic semiconductor supply chain. "The investment tax credit is a critical tool to accelerate construction of the semiconductor ecosystem in the United States and may be the most powerful incentive to onshore critical technologies powering the AI revolution," said Ajit Manocha, SEMI President and CEO. "Materials manufacturing projects are equally critical to ensuring that leading-edge logic and memory products are available to fuel skyrocketing AI and high-performance computing demand across the world. The SEMI Investment Act will help ensure these critical projects get built in the United States. We are deeply grateful to Senators Blackburn, Bennet, Tillis and Coons for bringing this important legislation forward to clarify Congress' original intent underlying Section 48D of the CHIPS and Science Act." The SEMI Investment Act amends the Internal Revenue Code of 1986 to clarify that 48D Tax Credit includes materials integral to the manufacturing of semiconductors and semiconductor manufacturing equipment. The bill will ensure that critical materials projects can access the same 25 percent investment tax credit that semiconductor manufacturing and semiconductor manufacturing equipment projects have access to today. "SEMI looks forward to working with Congress and the Trump Administration to pass the SEMI Investment Act into law," said Manocha. "The bipartisan support for this legislation highlights it as a critical step for the U.S. to strengthen its semiconductor industry, national security, and economic competitiveness. Additionally, the act would help prevent vital materials companies from moving overseas and ensure that American manufacturers realize the benefits of the semiconductor incentives investment Congress originally intended under the CHIPS and Science Act. We also recognize the importance of ensuring these incentives are available for the duration needed to match the long-term nature of semiconductor investments." Visit SEMI Global Advocacy to learn more about public policy efforts and developments. About SEMI SEMI ® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON ® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit contact a regional office, and connect with SEMI on LinkedIn and X to learn more. Association Contact
Yahoo
09-05-2025
- Business
- Yahoo
SEMI Applauds New Bill to Clarify Tax Credit Eligibility for Critical Semiconductor Suppliers Under U.S. CHIPS Act
MILPITAS, Calif., May 9, 2025 /PRNewswire/ -- SEMI, the industry association serving the global semiconductor and electronics design and manufacturing supply chain, today announced support of the Strengthening Essential Manufacturing and Industrial Investment Act (SEMI Investment Act), which clarifies that critical materials suppliers to semiconductor manufacturers are eligible for the Advanced Manufacturing Investment Tax Credit ("Section 48D") created by the United States CHIPS and Science Act. Introduced by Senators Marsha Blackburn (R-Tenn.), Michael Bennet (D-Colo.), Thom Tillis (R-NC) and Chris Coons (D-Del.), the SEMI Investment Act would help make semiconductor materials an equal part of America's investment in advanced semiconductors and contribute to a secure, domestic semiconductor supply chain. "The investment tax credit is a critical tool to accelerate construction of the semiconductor ecosystem in the United States and may be the most powerful incentive to onshore critical technologies powering the AI revolution," said Ajit Manocha, SEMI President and CEO. "Materials manufacturing projects are equally critical to ensuring that leading-edge logic and memory products are available to fuel skyrocketing AI and high-performance computing demand across the world. The SEMI Investment Act will help ensure these critical projects get built in the United States. We are deeply grateful to Senators Blackburn, Bennet, Tillis and Coons for bringing this important legislation forward to clarify Congress' original intent underlying Section 48D of the CHIPS and Science Act." The SEMI Investment Act amends the Internal Revenue Code of 1986 to clarify that 48D Tax Credit includes materials integral to the manufacturing of semiconductors and semiconductor manufacturing equipment. The bill will ensure that critical materials projects can access the same 25 percent investment tax credit that semiconductor manufacturing and semiconductor manufacturing equipment projects have access to today. "SEMI looks forward to working with Congress and the Trump Administration to pass the SEMI Investment Act into law," said Manocha. "The bipartisan support for this legislation highlights it as a critical step for the U.S. to strengthen its semiconductor industry, national security, and economic competitiveness. Additionally, the act would help prevent vital materials companies from moving overseas and ensure that American manufacturers realize the benefits of the semiconductor incentives investment Congress originally intended under the CHIPS and Science Act. We also recognize the importance of ensuring these incentives are available for the duration needed to match the long-term nature of semiconductor investments." Visit SEMI Global Advocacy to learn more about public policy efforts and developments. About SEMISEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members' business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit contact a regional office, and connect with SEMI on LinkedIn and X to learn more. Association Contact Samer Bahou/SEMI USPhone: 1.408.943.7870Email: sbahou@ View original content to download multimedia: SOURCE SEMI Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Wolfspeed Drops Nearly 50% as Market Reacts to Financial Update and Funding Outlook
Wolfspeed (NYSE:WOLF) announced steps to improve its capital structure on Friday, as its stock dropped more than 48% in midday trading following mounting concerns around its balance sheet and funding outlook. The company, which manufactures silicon carbide and gallium nitride materials for applications such as electric vehicles, disclosed it has received $192.1 million in cash tax refunds. That includes $186.5 million related to fiscal 2023 and 2024, along with accrued interest. These funds are part of an expected $1 billion total in Section 48D cash tax refunds. Wolfspeed has accrued $865 million in tax credits so far and anticipates receiving an additional $600 million in fiscal 2026. The company said it plans to use the proceeds to support its capital structure and for general corporate purposes. It also reaffirmed its revenue guidance for the third quarter of fiscal 2025, projecting revenue between $170 million and $200 million. Wolfspeed is still considering alternatives regarding its convertible notes and remains in discussions with lenders such as Apollo and Renesas. The company also continues talks with the White House and U.S. Department of Commerce, as speculation persists over the status of $1.5 billion in potential CHIPS Act funding. According to Reorg Research, Wolfspeed has not finalized a debt-swap agreement with noteholders and has cleared previously restricted parties from discussions. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
Wolfspeed Shares Plunge 52% After $192 Million Tax Refund, Company Reaffirms Q3 Guidance
Wolfspeed (WOLF, Financials) shares dropped 52.2% to $2.57 as of Friday afternoon after the company disclosed it had received $192.1 million in tax refunds under the Section 48D advanced manufacturing credit and reaffirmed its third-quarter fiscal 2025 guidance. The funds are earmarked to improve the company's capital structure. Warning! GuruFocus has detected 9 Warning Signs with WOLF. The company said that the return includes interest that has built up and $186.5 million from fiscal years 2023 and 2024. This payment is part of the total returns Wolfspeed plans to get from the government tax credit scheme, which is about $1 billion. In fiscal year 2026, more than $600 million should come in. The company wants to use the money to improve its capital structure and do other business-related thinks that it will have about $1.3 billion in cash on hand at the end of this fiscal quarter, which includes the chip company in Durham, North Carolina, kept its sales estimate for the third quarter at between $170 million and $200 million, with a non-GAAP gross margin of between 3% and 7%. GAAP says that the net losses will be between $270 million and $295 million, or $1.73 to $1.89 per common share. The company expects to lose between $119 million and $138 million, or $0.76 to $0.88 per share, in non-GAAP net also repeated the advice it had already given for fiscal years 2026 and 2027, which included spending between $150 million and $200 million on capital projects and between $30 million and $50 million on those projects, respectively. It wants to reach adjusted EBITDA break-even at $800 million in annual sales, after working to make operations simpler and closing its manufacturing plant in North business expects $200 million in operating cash flow that isn't tied to debt in fiscal year 2026 and positive leveraged free cash flow in fiscal year 2027, assuming that refinance deals go said that talks about its convertible debt are still going on with lenders like Apollo and Renesas. They are also talking to the U.S. Department of Commerce and other federal stakeholders to get support for bringing semiconductor manufacturing back to the U.S. and increasing the number of wafers that can be made in the makes silicon carbide chips that are used in electric cars and power gadgets. The company is also getting ready to grow its U.S. manufacturing, which is in line with government industrial policy goals. This article first appeared on GuruFocus.
Yahoo
28-03-2025
- Business
- Yahoo
Wolfspeed Drops Nearly 50% as Market Reacts to Financial Update and Funding Outlook
Wolfspeed (NYSE:WOLF) announced steps to improve its capital structure on Friday, as its stock dropped more than 48% in midday trading following mounting concerns around its balance sheet and funding outlook. The company, which manufactures silicon carbide and gallium nitride materials for applications such as electric vehicles, disclosed it has received $192.1 million in cash tax refunds. That includes $186.5 million related to fiscal 2023 and 2024, along with accrued interest. These funds are part of an expected $1 billion total in Section 48D cash tax refunds. Wolfspeed has accrued $865 million in tax credits so far and anticipates receiving an additional $600 million in fiscal 2026. The company said it plans to use the proceeds to support its capital structure and for general corporate purposes. It also reaffirmed its revenue guidance for the third quarter of fiscal 2025, projecting revenue between $170 million and $200 million. Wolfspeed is still considering alternatives regarding its convertible notes and remains in discussions with lenders such as Apollo and Renesas. The company also continues talks with the White House and U.S. Department of Commerce, as speculation persists over the status of $1.5 billion in potential CHIPS Act funding. According to Reorg Research, Wolfspeed has not finalized a debt-swap agreement with noteholders and has cleared previously restricted parties from discussions. This article first appeared on GuruFocus. Sign in to access your portfolio
