for pmc, the emerging competition is in china with a rate of 15%. for new technology businesses, and in contrast, the come pined federal and state corporate tax rate is approximately 39%. many countries offer substantial tax holiday incentives for new technology investmentings lowering the rate to 0 or single digits. while the u.s. need not match this, tax reform must be competitive with rates of competing countries. second, our worldwide tax system creates an additional tax incentive for countries. move to a territorial approach. this system would enable companies to repay treeuate their profits and invest and create jobs in the u.s.. it's the only major oecd country with a global tax system come bined with the highest tax rates, this is a penalty for those on a global scale. finally, comprehensive tax reform should provide strong incentives to encourage research and development in the u.s.. research and development is the life blood of the semiconductor industry, but the credit in the u.s. is weak compared to the global competition and lapsed 13 t