Chipmakers Win Bigger Tax Credit Under Bill Passed by Senate

Sweeping tax legislation passed by the Senate Tuesday would make it cheaper for semiconductor manufacturers to build plants in the US, delivering a win to chipmakers and boosting US efforts to expand the industry domestically.

Companies such as Intel Corp., Taiwan Semiconductor Manufacturing Co. and Micron Technology Inc. will be eligible for an investment tax credit of 35% if they break ground on new plants before an existing 2026 deadline. That’s a jump from the existing 25% and tops an increase to 30% envisioned in a draft proposal.

The semiconductor manufacturing provision was tucked into a nearly 900-page bill ...