Trump Boosts Tax Credits for US Chipmakers to 35% to Strengthen Domestic Production

The US Senate has passed legislation increasing tax credits for semiconductor manufacturers from 25% to 35%, a MOVE aimed at incentivizing companies like Intel, Micron, and Taiwan Semiconductor Manufacturing Company to expand operations on American soil. This aggressive policy shift seeks to relocate advanced chip production from Asia to the US by 2026, building on earlier initiatives such as the 2022 CHIPS and Science Act.

The revised tax credit structure offers long-term benefits rather than temporary subsidies, with the final version surpassing the draft's proposed 30% rate. House Republicans now pose the final hurdle, with Speaker Mike Johnson navigating narrow voting margins as opposition mounts within his own party. The outcome could determine whether America meets its semiconductor self-sufficiency targets.