US Senators Suggest 25% Tax Credit For Semiconductor Chip Production Boost: Reuters

Anusuya Lahiri
·1 min read
2

  • A bilateral group of U.S. senators proposed a 25% tax credit for semiconductor manufacturing investments, Reuters reported.

  • Last week, the Senate approved billion for production and research on semiconductors and telecommunications equipment. The approval included $2 billion earmarked for auto chips which had to opt for production cuts due to the semiconductor chip crisis.

  • U.S. Commerce Secretary Gina Raimondo estimates the funding to lead to seven to 10 new U.S. semiconductor plants and generate over $150 billion in chip production and research investment, including state and federal governments and private-sector firms contribution.

  • The tax credit could benefit chipmakers like Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), NXP Semiconductors NV (NASDAQ: NXPI), Intel Corp (NASDAQ: INTC), and Micron Technology Inc (NASDAQ: MU).

  • TSM has initiated the billion chip factory construction in the Arizona site.

  • The U.S. share of semiconductors and microelectronics production slipped from 37% in 1990 to 12 at present.

  • Foreign subsidies accounted for 70% of the cost difference for semiconductor overseas production.

  • Price action: INTC shares traded higher by 0.21% at $57.3 in the premarket session on the last check Friday.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.