Trump Administration May Provide Extra Tax Credits to Intel, TSMC, and Micron for Expanding U.S. Manufacturing

The Trump administration appears poised to incorporate select features of the CHIPS Act, potentially offering incentives to semiconductor manufacturers such as TSMC to bolster their investments in the United States.

U. S.“Big, Beautiful Bill”Inspired by Biden’s CHIPS Act: Expanding Tax Credits for Manufacturers

Historically, President Trump has expressed skepticism towards extending benefits to chip manufacturers. His criticism of the Biden-era CHIPS Act, which he labelled a “Biden money”initiative, underscores his original stance. Nevertheless, the current administration is now prioritizing domestic semiconductor production as a matter of national importance. This shift has catalyzed major investments from industry leaders like TSMC and Micron, aimed at enhancing the U. S.chip manufacturing landscape. Under the proposed “Big, Beautiful Bill, ”there are plans to increase tax credits for semiconductor companies, which would lower their operational costs for establishing production facilities on U. S.soil.

Interestingly, Trump’s initial strategy to attract firms involved imposing tariffs, compelling companies to establish local operations. However, recognizing the necessity of incentives, the administration is now pivoting towards a more supportive financial framework. If passed, the bill intends to elevate tax credits for semiconductor manufacturers from 20% to 35%, although this change remains subject to final approval. The specific companies that will benefit from these financial incentives are yet to be determined, but those committing substantial investments are likely to receive preferential treatment.

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On the investment front, TSMC has emerged as a frontrunner, actively expanding its operations and even contemplating new facilities in the U. S.The Taiwanese semiconductor giant has pledged over $100 billion to strengthen its presence in the American market, positioning itself to gain significantly from the anticipated tax incentives from the Trump administration. Similarly, Micron is contemplating an impressive $200 billion investment, aimed at establishing cutting-edge memory fabrication facilities focused on DRAM and HBM production.

It is evident that President Trump’s strategy to enhance domestic semiconductor manufacturing is yielding positive outcomes. Companies that have announced expansion plans inspired by the CHIPS Act are beginning to deliver results, with the exception of Intel, which has faced some challenges.

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