In a speech given at Intel Corp.’s offices in Hillsboro, Ore. on Wednesday (Nov. 30), Smith indicated that U.S. corporate tax policies have (and will continue to have) a detrimental impact on high technology, especially the semiconductor industry.
Citing a faulty tax structure for corporations, Smith said that it costs $1 billion more to own and operate a wafer fab in the United States, as compared to other regions outside the U.S.
The cost structure will accelerate job losses — especially in chip manufacturing — in the United States. “I fear manufacturing is moving in the same direction as agriculture,” he said, referring to the downward spiral and job losses in that sector.
“We want more spending on education and infrastructure,” he said. But more importantly, the U.S. government needs to “re-think its taxation policy to remain competitive.”
He did not provide any specifics or proposals. He did say the 109th session of Congress will give “considerable focus” on tax policy.