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

The semiconductor sector stands to gain significantly from potential tax reforms included in the Trump administration's spending bill. If passed, the revised version of the bill—already approved by the Senate—would increase the tax credit for companies constructing manufacturing facilities in the United States from 25% to 35%, according to reports by CNBC. Major players like Intel, TSMC, and Micron Technology are poised to benefit from this enhanced tax incentive as they look to grow their manufacturing presence in the U.S. This proposed tax break is particularly crucial for the semiconductor industry, which has faced financial setbacks due to new licensing requirements for exporting advanced AI chips to China, impacting revenues for several domestic manufacturers.