U.S. Senator proposes a 25% tax credit for semiconductor manufacturing

According to Reuters, Reuters, Washington, June 17-A bipartisan group of US senators proposed on Thursday to provide a 25% tax credit for investment in semiconductor manufacturing as Congress is working to increase US chip production.

The proposal jointly initiated by the chairman of the Senate Finance Committee Ron Wyden and the top Republican Senator Mike Crapo of the panel and Senators Mark Warner, Debbie Stabenow, John Cornyn and Steve Daines will provide "reasonable and targeted incentives" to the domestic semiconductor manufacturing industry. . They said in a statement.

The group did not immediately provide a cost estimate for the measure, which is on top of the recently proposed semiconductor funding. Last week, the Senate approved $52 billion for the production and research of semiconductor and telecommunications equipment. Including 2 billion US dollars dedicated to chips used by automakers, these chips have been severely in short supply and significantly reduced production. The House of Representatives must still take action on this measure.

Funding supporters point out that the United States’ share of semiconductor and microelectronics production has fallen from 37% in 1990 to 12%.

The senators said that as much as 70% of the cost difference in overseas production of semiconductors comes from foreign subsidies.

Wyden said: "The United States cannot allow foreign governments to continue to attract companies to manufacture overseas. This increases the risks to our economy and causes American workers to lose high-paying jobs."

US Secretary of Commerce Gina Raimondo (Gina Raimondo) said last month that the funding may lead to the construction of 7 to 10 new semiconductor factories in the United States.

Raimondo expects that government funds will generate "over $150 billion" of investment in chip production and research-including donations from state and federal governments and private sector companies.

The tax credit may benefit TSMC, which is building a $12 billion semiconductor factory in Arizona, and benefits Dutch chip maker NXP and American companies such as Intel Corporation and Micron Technology.

The Semiconductor Industry Association praised the proposal, stating that it will "strengthen domestic chip production and research, which is critical to the creation of jobs, defense, infrastructure, and the semiconductor supply chain in the United States."