Recently, the "Big and American" bill, which has caused fierce quarrels between US President Trump and Tesla founder Mask, was finally officially passed. Although this act was criticized by some industrial operators, it is believed that it will hinder its development. However, the semiconductor industry that is concerned about in Taiwan is seen as favorable news because it will provide more discount codes. This led to the decline of the semiconductor index, which had fallen more than 2% in the early trading after the Court passed the bill, and Intel's stock price once rose more than 3%.
In fact, after former US President Biden signed the legislation of the "Crystal Act" on August 9, 2022, it clearly provided a total of US$5.42 billion in federal financial subsidies and a 25% investment tax credit for the US semiconductor industry and Open RAN innovation activities. In addition, the bill also pays $169.9 billion for scientific and research and development activities in other leading areas. The purpose of this bill is to increase the competitiveness of US semiconductor manufacturing industries and promote innovative capabilities in key areas such as aerospace. The main beneficiaries of the grant include major industrial factories such as Intel, NTU, Micron Technology and Samsung Electronics.
On this basis, the US House of Parties passed the "Big and American" bill on the 1st. Although the clean-up energy and electric vehicles industry has been backfired, it has further expanded the tax reduction benefits for semiconductor manufacturers to invest in construction factories in the United States. According to the final version of the bill, the Big and Beauty bill significantly increased the proportion of investment credits. Among them, in the high-income investment credit, including chip companies such as Intel, NTU and Micron, if new factories are built in the U.S. Motorcycle before the 2026 deadline proposed by the chip bill, they will be eligible to enjoy an investment tax credit of up to 35%. This proportion is far beyond the 25% originally stipulated by the Chip Act, and is also higher than the 30% ratio proposed in the previous draft of the "Big and Beauty" Act.
In addition, the "Big and Beauty" bill also provides no upper limit incentives, which means that there is no upper limit on the tax credit proposed in the final edition of the Party Committee. This means that its cost is likely to be higher than other forms of supplementation, depending on the scale of investment in the industry stimulated by the Chip Act. In any case, this unlimited tax credit will almost bring the greatest proportion of incentives to any company, even those that do not receive direct payments from the Chip Act.
Based on the above-mentioned bill, after the Court passed the bill, the overall decline of chip stocks in the U.S. stock market was moderated during the afternoon trading session. The Philadelphia Semiconductor Index, which had fallen by 2.1%, returned to the near-panel position in the early trading and finally closed down 0.7%. In the current stock performance, Taiwan Power ADR, which fell more than 2% early, finally closed at 0.8%. Micron, which once fell by 3%, also closed down 1.9% at the close. As for, Intel rose by about 3.4% at one point, and finally closed by about 2%.
Overall, the "Diagram Act" and the "Big and American" Act jointly established a strong policy framework. Through huge financial subsidies and significantly increased investment tax credits, semiconductor companies have greatly encouraged local governments to build and expand chip manufacturing facilities in the United States. These measures aim to attract global leading chip manufacturers to factories in the United States to enhance the competitiveness and reliability of the United States in global semiconductor supply chains.
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Posted by TechNews Technology News (@technewsinside)