Chip design, firmware & signal integrity
Estimate your credit →Designing chips, boards, firmware, and test methods involves resolving uncertainty about timing, power, signal integrity, and yield through extensive simulation and testing.
The credit is calculated on qualified research expenses (QREs) — primarily wages for engineers and technical staff who spend time on qualifying activities, plus supplies, cloud/compute, and 65% of qualified contract research.
The table below lists the business components that most often qualify, a common example, and the technical uncertainty that makes each one defensible.
| Business component | Example | Technical uncertainty |
|---|---|---|
| Chip / IC design | New ASIC, SoC, or analog IC | Will the design meet timing, power, and area targets? |
| Firmware & embedded software | Device firmware, RTOS integration | Will firmware meet real-time and reliability needs? |
| PCB & hardware design | Multi-layer or high-speed board | How to maintain signal integrity? |
| Signal integrity & RF | RF front-end, high-speed interconnect | How to control noise, EMI, and integrity? |
| Packaging & thermal design | Advanced packaging, thermal management | Will it manage heat and density? |
| Test & validation methods | New test methodology or ATE program | How to validate at the needed speed and coverage? |
| Power management | New power IC or regulation scheme | Will it meet efficiency and thermal targets? |
| Process / fab development | New fabrication process step | Will the process yield within spec? |
Wages for time spent on qualified research may count toward your credit. Percentages depend on facts and must be documented.
Illustrative example using sample figures. Your actual credit depends on your facts; see Form 6765 and consult a tax professional.
The IRS requires qualifying research to satisfy four tests. Here's how they typically map for this industry:
The activity aims at improving a product, process, software, or technique used in the business — not just a business outcome.
The work relies on principles of engineering, computer science, biology, chemistry, or another hard science to resolve uncertainty.
There was genuine uncertainty at the outset about whether — or how — the component could be built or improved.
The team evaluated alternatives: A/B tests, prototypes, benchmarks, simulations, or iterative design-build-test cycles.
Most companies underestimate what they can claim. Our study covers every qualifying role, every component, and every year still open for amendment.
Get your free estimate →