The United States Senate is reviewing a new tax bill that will increase tax credits for semiconductor manufacturers from 25% to 30%.
Changes in Tax Credits
According to the draft tax bill, tax credits for semiconductor manufacturers will be increased to 30%. This change is aimed at encouraging manufacturers to invest in new plants before the tax benefits expire at the end of 2026.
Semiconductor Bill and Its Implications
In 2022, President Joe Biden signed the Chips and Science Act, which offers $39 billion in grants and up to $75 billion in loans. The biggest beneficiaries of the law include companies like Intel, Taiwan Semiconductor Manufacturing Co., Samsung Electronics, and Micron Technology. At the same time, some lawmakers, including Donald Trump, express dissatisfaction with this law.
Trump's Trade Policy and the Future of Chips Act
Donald Trump criticizes the Chips Act, believing tariffs are more effective than subsidies. However, he also proposed creating a new structure to manage Chips Act funds aimed at evaluating and improving investment conditions. This new strategy may complement rather than eliminate existing programs.
The Senate's plans to increase tax credits for semiconductor manufacturers may strengthen the American industry, while Trump's conflicting stance on subsidies and tariffs creates additional tension in discussions.
