Sacramento, September 28 — California has taken a significant step forward in supporting the growth of its semiconductor industry, with the removal of unnecessary regulatory barriers. On April 5, 2025, Governor Gavin Newsom signed Senate Bill 1306 into law, aligning the state’s regulations on chemical mixtures containing gamma-butyrolactone (GBL) with existing federal standards. The technical reality under the hood of this new law is that it streamlines operations for semiconductor manufacturers by removing state requirements for qualifying mixtures containing GBL at concentrations of 70% or less by weight or volume.
As ever, the detail that matters is that this change is expected to reduce costs and help ensure that the next generation of semiconductor research and high-paying jobs remains in California.
Streamlining Semiconductor Research
California leads the nation in semiconductor research and development, accounting for approximately 51% of U.S. semiconductor R&D in 2021. The state’s semiconductor sector contributes more than $100 billion annually to the economy, making it a crucial part of the state’s economic landscape. Senator Dave Cortese, the bill’s sponsor, stated that California cannot claim to be the global leader in semiconductor innovation while maintaining outdated regulations that make it harder and more expensive to manufacture and conduct research.
A sharp rise in efficiency is expected as a result of this new law, with the removal of permitting, reporting, record-keeping, and transaction requirements for certain GBL-containing chemical mixtures that are exempt from comparable federal requirements. This change will help semiconductor manufacturers in the state to operate more efficiently and competitively.
Industry Support
The bill received support from SEMI, a global industry association representing the electronics manufacturing supply chain. SEMI Americas President Joe Stockunas praised the law for promoting consistent policies to strengthen supply chain resiliency and ensure the safe use of critical materials across California’s technology and manufacturing sectors. With SB 1306 signed into law, California gains important clarity and alignment that will help maintain a resilient semiconductor ecosystem while upholding high standards for safety and responsible industry practices.
As the semiconductor industry continues to evolve, it will be important to watch how this new law impacts the growth and development of the sector in California. With the state’s strong foundation in semiconductor research and development, it is likely that this change will have a significant impact on the industry’s future.
Looking Forward
Now that the regulatory barriers have been removed, the focus will shift to how the industry responds to this change. As the US administration, including President Donald Trump and Secretary of State Marco Rubio, continues to support the growth of the tech industry, it will be interesting to see how California’s semiconductor sector benefits from this new law. One thing is certain – the removal of these regulatory barriers will have a significant impact on the industry’s ability to innovate and grow.
