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U.S. senators propose 25% tax credit for semiconductor manufacturing

Reuters2021-06-18

WASHINGTON, June 17 (Reuters) - A bipartisan group of U.S. senators on Thursday proposed a 25% tax credit for investments in semiconductor manufacturing as Congress works to increase U.S. chip production.

The proposal sponsored by Senate Finance Committee Chairman Ron Wyden and the top Republican Senator Mike Crapo along with four other senators would provide "reasonable, targeted incentives for domestic semiconductor manufacturing," they said in a statement.

The group did not immediately respond to a request for a cost estimate for the measure, which is on top of recent semiconductor funding. Last week, the Senate approved $52 billion for production and research on semiconductors and telecommunications equipment. That included $2 billion dedicated to chips used by automakers, which have seen massive shortages and made significant production cuts.

Supporters of funding note the U.S. share of semiconductors and microelectronics production has fallen to 12% from 37% in 1990.

The senators said up to 70% of the cost difference for producing semiconductors overseas results from foreign subsidies.

"The United States can’t allow foreign governments to continue to lure companies’ manufacturing overseas, increasing risks to our economy and costing American workers good-paying jobs," Wyden said.

U.S. Commerce Secretary Gina Raimondo said last month the funding could result in seven to 10 new U.S. semiconductor plants.

Raimondo anticipates government funding would generate "$150 billion-plus" in investment in chip production and research - including contributions from state and federal governments and private-sector firms.

"We just need the federal money ... to unlock private capital," Raimondo said.

The tax credit could benefit Taiwan Semiconductor Manufacturing Co (TSMC), which is building a $12 billion semiconductor factory in Arizona, and Dutch chipmaker NXP Semiconductors NV as well as U.S. firms such as Intel Corp and Micron Technology Inc.

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评论57

  • Phyusin
    ·2021-06-21
    But now TSMC Price drop?
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  • minivault
    ·2021-06-19
    Loading up on semicons 
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  • Alihuat
    ·2021-06-19
    Good news but why stock drop??
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  • gevaudan
    ·2021-06-19
    [微笑] 
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  • kurokirin
    ·2021-06-18
    Hopefully this helps the semiconductor industry get back on track faster. Prices for parts are still expensive 
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  • simply_sim
    ·2021-06-18
    Semiconductor stocks don't seem to move up in the premarket.
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  • Jjsoh
    ·2021-06-18
    👍
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  • Tps
    ·2021-06-18
    Hopefully some good news To boost!
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  • roushiro
    ·2021-06-18
    Interesting
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  • KAHHUAT
    ·2021-06-18
    Wow.. 
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  • JunwuC
    ·2021-06-18
    Big change for Semicons. Will be a big boost
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  • HenryGoei
    ·2021-06-18
    No no no
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  • Deca
    ·2021-06-18
    Get your hands on amd and nvidia ASAP, and the low profile micron [财迷] 
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  • Alvinweet
    ·2021-06-18
    Like like for letter
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    收起
  • Kokkeng1119
    ·2021-06-18
    [强] [看涨] 
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  • VSkemama
    ·2021-06-18
    Like and comment
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  • TiggerK
    ·2021-06-18
    This is good for US semiconductor manufacturers. 
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    收起
    • ynwaben
      yea
      2021-06-18
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  • dawnyong
    ·2021-06-18
    Good job
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  • Huat1333
    ·2021-06-18
    Interesting [微笑] [微笑] [微笑] 
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  • Yinasim
    ·2021-06-18
    Good news for US semiconductor manufacturers
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    收起
    • Huat1333
      supports [强]
      pls likes n comments,  tks
      2021-06-18
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