It seems like the Trump administration plans to take "some elements" of the CHIPS Act and grant incentives to manufacturers like TSMC, if they scale up US investments.
U.S. "Big, Beautiful Bill" To Take Inspiration From Biden's CHIPS Act, Granting More Tax Credits to Manufacturers
President Trump has always been against granting benefits to chip companies, and he has voiced plenty of times against the Biden-era "CHIPS Act", claiming it to be a "Biden money" scheme. The Trump administration has taken domestic chip production as a national priority and has convinced the likes of TSMC and Micron to pour in massive investments into the region to fuel the country's chip capabilities. Now, with the "Big, Beautiful Bill", the US administration could increase tax credits to semiconductor manufacturers, which would allow them to build facilities in the country at a relatively decreased cost.
Interestingly, President Trump's way of bringing companies into the U.S. was to impose tariffs on their business, forcing them to set up facilities in the region, but now, with the additional tax credits, it is safe to say that the government has realized that incentives are necessary. The bill proposes to increase the tax credits to semiconductor firms from 20% to 35%, but this hasn't been finalized yet. For now, the beneficiaries of this move are yet to be known, although most likely, favour would be given to those firms that pour in hundreds of billions.
As far as investments in America are concerned, the Taiwan giant TSMC has been the most proactive when it comes to scaling up existing facilities and potentially opening new ones. The firm has announced more than $100 billion in investments into the region, so it is most likely that they'll benefit immensely from tax credits coming in from the Trump administration. Similarly, Micron has plans to increase US investments up to $200 billion, setting up a leading-edge memory fab, responsible for DRAM and HBM production.
There's no doubt that President Trump's efforts to scale up domestic chip production have worked out immensely, especially since companies that laid down plans following the CHIPS Act are actually delivering, except for maybe Intel.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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