US Chipmakers Eye Bigger Tax Credits Under New Bill
The semiconductor industry in the United States could soon receive a significant financial boost. A recent development in the Trump administration's "Big, Beautiful Bill," which has already passed in the Senate, proposes to increase tax credits for chipmakers establishing manufacturing plants on U.S. soil.
Originally set at 25%, the tax credit for these crucial domestic investments is slated to rise to a more substantial 35%. This proposed change, initially reported by CNBC, aims to incentivize further expansion of U.S. manufacturing capabilities by leading companies.
Major players in the semiconductor space, including Intel, TSMC, and Micron Technology, stand to gain considerably if they continue to invest in and expand their manufacturing efforts within the United States. Such a tax incentive could be a timely intervention for an industry that has faced recent headwinds.
The potential tax benefits arrive at a critical juncture, especially following recent U.S. government-imposed chip export licensing requirements. These restrictions, particularly concerning the sale of advanced AI chips to China, have led to material revenue impacts for several domestic chipmakers, including Nvidia and AMD, as reported by TechCrunch. The increased tax credit could help offset some of these financial pressures and reinforce the domestic semiconductor supply chain.
References
- CNBC: Chipmakers get bigger tax credits in Trump's latest 'Big, Beautiful Bill'
- TechCrunch: Nvidia H20 chip exports hit with license requirement by US government
- TechCrunch: Nvidia expects to lose billions in revenue due to H20 chip licensing requirements
- TechCrunch: AMD takes $800M charge on US license requirement for AI chips
- TechCrunch: US chipmakers could see bigger tax credits if Trump's spending bill passes
