US Semiconductor Sector Eyes Windfall From Proposed Tax Overhaul
Proposed 'OBBBA' legislation would hike tax credits for new domestic chip plants to 35%, aiming to accelerate 'Made in America' initiatives.
The U.S. semiconductor industry is poised for a significant boost as new legislation, the '', proposes a major enhancement to manufacturing incentives. The bill, which aims to strengthen domestic supply chains, hikes the investment tax credit to 35% for companies building advanced chip fabrication plants on U.S. soil, a substantial increase from the 25% offered under the existing CHIPS Act.
This move is designed to create a powerful financial tailwind for capital-intensive semiconductor manufacturing, lowering the effective cost of building multibillion-dollar facilities. The legislation builds upon the foundation of the 2022 CHIPS and Science Act, accelerating the push to reduce America's reliance on foreign chip production, particularly from Asia. By sweetening the deal for domestic investment, Washington is sending a clear signal that onshoring critical technology infrastructure remains a top national priority.
The enhanced tax credit is expected to benefit a wide range of companies committed to expanding their U.S. footprint. , who are already planning new domestic projects, are seen as primary beneficiaries. The policy is aimed at and could influence final investment decisions for global firms considering expansion in the United States. Analysts see the proposal as a critical step in rebuilding America's chip capacity, a move with broad implications for both economic and national security.