US chipmakers could see bigger tax credits if Trump’s spending bill passes

The Trump administration’s current spending bill, known as the “Big, Beautiful Bill,” includes a provision that could significantly increase tax credits for semiconductor manufacturers building plants in the U.S. The bill, which has already passed the Senate, proposes raising the tax credit from 25% to 35%. This enhanced credit aims to incentivize companies like Intel, TSMC, and Micron Technology to expand their domestic manufacturing capabilities. This potential tax boost comes at a critical time for the semiconductor industry, which has faced challenges due to recent export restrictions on advanced AI chips to China. The increased tax credit could help offset some of the difficulties caused by these trade limitations and support the growth of U.S.-based chip production. However, the final impact depends on whether the spending bill passes in its current form.