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Latest edition of US President Donald Trump “Big Beautiful Bill” The semiconductor manufacturers can make it cheaper to manufacture plants in the US as Washington has continued its efforts to strengthen its domestic chip supply chain.
Under the bill, the tax credit for those semiconductor firms passed by the Senate on Tuesday will increase from 25% to 35%. This is an increase of more than 30% that made it in the draft version of the bill.
Chipmakers may be included in eligible companies for credit Intel, Taiwan semiconductor manufacturing company And Micro -technologyProvided they expand their advanced manufacturing in America 2026 time limit,
The new provisions are expanded on tax encouragement under the 2022 Chips and Science Act, which grant a grant of $ 39 billion and a $ 75 billion for US-based semiconductor manufacturing projects.
But before playing the extended credit, Trump’s broad domestic policy will have to be packaged Passed again at homeWhich crossed his own version last month. The President has urged MPs to pass the bill by July 4.
Trump vs biden
Since Trump’s first term, Washington is trying to perform more of the advanced semiconductor supply chain from Asia, supports its domestic players and limits China’s capabilities.
Although the tax provisions in Trump’s comprehensive policy bill expand them on those in the Chips Act of Biden Administration, their overall approach to the semiconductor industry is separate.
Earlier this year, President also called Chips actHowever, Republican MPs have been reluctant to take action on that front. Nevertheless, US Commerce Secretary Howard Lootnik Said last month The administration was re -connecting some grants of the Biden administration.
Trump has earlier stated that the Tariff, unlike the Chips Act grant, will be the best way for semiconductor production. Trump administration is currently conducting an operation Investigation in import of semiconductor technologyAs a result, there can be new duties on the industry.
In recent months, several passers with projects in the US have increased planned investments there. Which includes the world’s largest contract chipmaker, TSMCAs well as American chip companies Nvidia, Micron And Globalfoundries,
According to Tech Advisory firm Futuram Group CEO Daniel Numan, Trump’s threat of tariffs has created more urgency for semiconductor companies to expand American capacity. If increased investment taxes come under credit law, then only their purse efforts are expected to accelerate, he told CNBC.
Pneumon said, “Given the risk of tariffs, increasing manufacturing in the US is an important idea for these large semiconductor companies,” said, Pnewards said, tax credit can be seen as an opportunity to offset some costs related to US-based projects.
