Legislators propose a 25% tax credit to incentivize domestic chip production


A group of bipartisan lawmakers on the Senate Finance Committee have Aims to incentivize chip manufacturers to manufacture chips in the United States.Sponsored by The Governor of Oregon and Republican of Idaho, Mike Crapo, and other members of the committee, the “Promoting American Manufacturing of Semiconductor Act” will provide companies with a 25% tax credit when investing in domestic semiconductor manufacturing equipment and facilities.

According to the expert group, as much as 70% of the cost advantages provided by overseas chip foundries come from foreign subsidies. The proposed subsidy will be in addition to the $52 billion designated by the Senate last week. Since the beginning of the pandemic, the chip shortage has affected many different companies, including having to Under certain circumstances.

Senator Wyden said: “The United States cannot allow foreign governments to continue to attract companies to manufacture overseas. This increases the risks to our economy and causes American workers to lose high-paying jobs.”

according to Reuters, The tax credit will mainly benefit Taiwan’s TSMC, which is establishing a It will also help US chipmakers such as Intel and Micron Technology.The former announced Two factories were established in Arizona in April. The group has not yet shared an estimate of how much the bill will cost taxpayers.

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