Bennet, Budd Introduce Bipartisan Bill to Unlock U.S. Space-Based Chip Manufacturing & Close Advanced Manufacturing Gap with China

Jun 12, 2026 | Press Releases

Denver - Colorado U.S. Senator Michael Bennet, a senior member of the Senate Finance Committee, and U.S. Senator Ted Budd (R-N.C.) introduced the Semiconductor Superiority Act. This bipartisan legislation amends Section 48D of the CHIPS and Science Act of 2022 to clarify that space-based semiconductor manufacturing is an included use for tax credits. In May 2025, Bennet introduced the bipartisan Strengthening Essential Manufacturing and Industrial (SEMI) Investment Act to expand Section 48D tax incentives for semiconductor facilities to include upstream materials suppliers.

The legislation eliminates uncertainty for American manufacturers regarding microgravity semiconductor technology, bolstering U.S. global competitiveness. U.S. Representatives Vern Buchanan (R-Fla.), Terri Sewell (D-Ala.), and Suzan DelBene (D-Wash.) led companion legislation in the House of Representatives.

"Colorado has the talent, research institutions, and aerospace ecosystem to lead the next generation of semiconductor innovation," said Bennet. "We cannot afford to fall behind. The next frontier of semiconductor manufacturing should be led by the United States. I look forward to working with my colleagues to pass this bipartisan bill into law."

"Every day, over 300 million Americans utilize semiconductor chips, whether in smartphones, televisions, bank ATMs, or home appliances, but now that China has already implemented space-based chip fabrication into its supply chain, the U.S. is at risk of losing our global competitive edge," said Budd. "The Semiconductor Superiority Act gives domestic manufacturers the green light to develop microgravity semiconductor technology to compete with China. Given that several American companies are already investing in the equipment, launch capacity, and advanced chips manufacturing, we already have momentum, and we cannot afford to stall."

By unlocking the Section 48D tax credits under the CHIPS and Science Act, the Semiconductor Superiority Act will:

• Lower the barriers for fast, high-yield semiconductor production within low-earth orbit (LEO) to reduce defects in crystal growth and material deposition. The aim is to boost domestic manufacturing and ensure the United States reclaims a larger share of cutting-edge chip fabrication to safeguard advanced U.S. supply chains.

• Close the advanced manufacturing gap with China by expanding the capabilities of American chip manufacturing to better compete globally. This is especially important given that China has already developed its LEO semiconductor manufacturing capacity at its Tiangong Space Station.

Last year, Bennet helped pass into law several provisions from the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act, legislation that protects U.S. national security by limiting American investments in certain technologies in China, such as artificial intelligence, advanced semiconductors, quantum systems, and hypersonics. In July 2022, Bennet celebrated the passage of the bipartisan CHIPS and Science Act which boosted the domestic semiconductor industry, funded the largest five-year investment in public research and development in the nation's history, and created regional technology hubs nationwide to spur broad-based job creation and innovation.

The text of the bill is available HERE.

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