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The latest version of US President Donald Trump “Big Beautiful Banknotes” Semiconductor manufacturers can build factories in the U.S. cheaply as Washington continues to work hard to strengthen its domestic chip supply chain.
Tax credits for these semiconductor companies will rise from 25% to 35% under a bill passed by the Senate on Tuesday. This is more than 30% growth, making it a draft version of the bill.
Companies eligible for credit may include chip manufacturers Intel,,,,, Taiwan Semiconductor Manufacturing Company and Micron technologyAs long as they expanded their advanced manufacturing industry in the United States before the United States 2026 deadline.
Under new provisions on tax incentives under the 2022 CHIPS and Science Act, the bill provides $39 billion in grants and $75 billion in loans to semiconductor manufacturing projects in the U.S.
But before the expanded points come into play, Trump’s domestic policy plan must be Passed in the house againnarrowly passed its own version last month. The president has urged lawmakers to obtain the bill by July 4.
Trump vs. Biden
Since Trump’s first term, Washington has been working to support more high-level Asian semiconductor supply chains onshore, supporting its domestic players and limiting China’s capabilities.
Although Trump’s tax provisions in the Comprehensive Policy Act expand tax provisions in the Biden Administration’s chips Act, his overall approach to the semiconductor industry is different.
Earlier this year, the president even called for Abolish the chip lawalthough Republican lawmakers have been reluctant to take action on this. Nevertheless, U.S. Secretary of Commerce Howard Lutnick Said last month The administration is renegotiating some of the Biden administration’s grants.
Trump has previously said that contrary to the Chip Act grant, tariffs will be the best way to start semiconductor production. The Trump administration is currently underway Investigation on the import of semiconductor technologywhich could lead to new responsibilities in the industry.
In recent months, many chip manufacturers with projects in the United States have increased their planned investment there. These include the world’s largest contract chip manufacturer TSMCand American chip companies Nvidia,,,,, Micrometer and GlobalFroundRoss.
Daniel Newman, CEO of tech consulting firm Futurum Group, said the threat of Trump tariffs has made semiconductor companies more urgent to expand U.S. capabilities. He told CNBC that those open work will only accelerate if the investment tax credit is increased.
“Growing manufacturing in the U.S. remains a key consideration for these large semiconductor companies, given the risk of tariffs,” Newman said, adding that the tax credit could be viewed as an opportunity to offset certain costs associated with U.S.-based projects.
