US senators propose 25% tax credit for semiconductor manufacturing

The full version of the article, along with thousands like it, can be found on the following page: US senators propose 25% tax credit for semiconductor manufacturing

Chipmakers

A bipartisan group of US senators have proposed a 25% tax credit for investments in semiconductor manufacturing as Congress works to increase US chip production.

The proposal sponsored by Senate Finance Committee Chairman Ron Wyden and the top Republican on the panel, Senator Mike Crapo, along with Senators Mark Warner, Debbie Stabenow, John Cornyn and Steve Daines, would provide "reasonable, targeted incentives for domestic semiconductor manufacturing," they said in a statement.

The group did not immediately provide a cost estimate for the measure, which is on top of recent proposed semiconductor funding. Last week, the Senate approved $52 billion for production and research on semiconductors and telecommunications equipment. That included $2 billion dedicated to chips used by automakers, which have seen massive shortages and made significant production cuts. The House of Representatives must still act on the measure.

Supporters of funding note the US share of semiconductors and microelectronics production has fallen to 12% from 37% in 1990.

The senators said up to 70% of the cost difference for producing semiconductors overseas results from foreign subsidies.

"The United States can’t allow foreign governments to continue to lure companies’ manufacturing overseas, increasing risks to our economy and costing American workers good-paying jobs," Wyden said.

US Commerce Secretary Gina Raimondo said last month the funding could result in seven to 10 new US semiconductor plants.

Raimondo anticipates government funding would generate "$150 billion-plus" in investment in chip production and research - including contributions from state and federal governments and private-sector firms.

The tax credit could benefit Taiwan Semiconductor Manufacturing Co (TSMC), which is building a $12 billion semiconductor factory in Arizona, and Dutch chipmaker NXP Semiconductors NV as well as US firms such as Intel Corp and Micron Technology Inc.

The Semiconductor Industry Association praised the proposal, saying it said would "strengthen domestic chip production and research, which are critical to US job creation, national defense, infrastructure, and semiconductor supply chains."

The team at Platform Executive hope you have enjoyed this article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by David Shepardson. Editing by Franklin Paul, Cynthia Osterman and Jonathan Oatis.

You can stay on top of all the latest developments across the platform economy, find solutions to your key challenges and gain access to our problem-solving toolkit and proprietary databases by becoming a member of our growing community. For a limited time, our subscription plans start from just $16 per month. What are you waiting for?

This news article was published by Platform Executive, the home of the platform economy.

If you enjoy the content then please post a link on your website, or share on social media to help us get the word out.



US senators propose 25% tax credit for semiconductor manufacturing posted first on https://www.platformexecutive.com/

Comments

Post a Comment

Popular posts from this blog

Top 5 business tools for small business owners

Image
The full version of the article, along with thousands like it, can be found on the following page: Top 5 business tools for small business owners Are you wondering if investing in online services is the right choice for your business? If so, just look at what other companies are doing. Reports show that 85% of small businesses have already invested in an online software tool to help their businesses succeed. If you're looking for business tools that will help you become more productive in business, this post will help. Below are five essential small business tools that will help. 1. CRM SOFTWARE Having a way to manage your contacts is essential for running a business. If you can't organize your contact data, you'll always be in a scramble to find the correct information when you need it the most. CRM software will help you organize that data. You can store contact information, information about past interactions, and other important information about your business co...
Read more

France orders websites to remove online marketplace Wish

Image
The full version of the article, along with thousands like it, can be found here: France orders websites to remove online marketplace Wish France has ordered search engines and online platforms to strip Wish from their listings over concerns about product safety and the US e-commerce marketplace said it was taking legal action to challenge the move. The French government, which has been investigating a number of online operators, said in a statement that its consumer watchdog had found a large proportion of products it examined on the Wish site to be dangerous. The government said Wish, which is operated by ContextLogic Inc based in San Francisco, had failed to recall them in a satisfactory manner and clearly inform consumers about the risks of some products sold through its platform. "We are starting legal action to challenge what we consider an illegal and disproportionate act," Wish said in a statement. Wish said it had always met demands from France's General ...
Read more

China drafts new data measures, defines “core data”

Image
The full version of the article, along with thousands like it, can be found here: China drafts new data measures, defines “core data” Communist China published new draft measures aimed at bolstering its new data security law, including definitions of what it considered "core" and "important" data. China implemented the Data Security Law on September the 1st which requires all companies in China to classify the data they handle into several categories and governs how such data is stored and transferred to other parties. But lawyers have criticised its ambiguities including its lack of definitions for data. Thursday's draft measures describe in detail three categories of data - ordinary data, important data, and core data. The authorities describe ordinary data as data with a minimal ability to impact society at large, or that will affect a small number of individuals or enterprises. Important data is defined as data that poses a threat to China's nati...
Read more