The U.S. Senate just passed a new version of President Donald Trump’s domestic policy bill that could reshape the semiconductor landscape. A key highlight: raising the investment tax credit for semiconductor manufacturers to 35% from 25%, making it significantly cheaper to build advanced chip facilities in the U.S.
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If enacted, this boost would apply to chipmakers such as Intel (INTC), Micron Technology (MU), and Taiwan Semiconductor Manufacturing Company (TSM), as long as they commence construction on new U.S. fabs before the 2026 deadline.
Trump Expands Chip Tax Credits to 35%
The policy builds on the 2022 CHIPS and Science Act, which provided $39 billion in grants and up to $75 billion in federal loans for domestic chip projects. Trump’s bill goes further in terms of tax incentives but also signals a shift in approach. While the Biden administration leaned heavily on grants, Trump has criticized those awards and pushed for tariffs as a more effective tool for onshoring.
An ongoing investigation by the Trump administration could lead to new import duties on semiconductor technology. That possibility has already increased urgency among chipmakers to expand U.S. capacity. Taiwan Semiconductor Manufacturing Company, Micron, Intel, and GlobalFoundries (GFS) have all recently expanded or reaffirmed their U.S. investment plans.
The increased 35% tax credit could further accelerate those moves. Unlike grants, which are competitive and come with conditions, the credit applies broadly and becomes active when construction begins. That offers clearer planning benefits for capital-intensive projects. Trump has urged lawmakers to finalize the bill before July 4. While the Senate version passed with the expanded credit, the House still needs to approve the final version. It passed its own narrower version last month.
INTC, MU, and TSM Stand to Benefit
For companies like Intel and Micron, which already have projects underway in states such as Ohio and New York, the new credit could improve project economics and accelerate timelines. Additionally, TSMC’s Phoenix facility, which is already backed by CHIPS Act grants, may also benefit if it expands its plans.
Investors should watch both the legislative timeline and potential tariff announcements. If tax credits take effect and tariffs follow, U.S.-based production becomes more attractive while import-heavy players could face new margin pressures. These policy shifts, if passed, could influence capital spending plans and long-term supply chain strategies. For now, companies positioned to scale advanced chip production on U.S. soil stand to gain the most.
Using TipRanks’ Comparison Tool, we’ve compared the four semiconductor companies appearing in the article. This enables investors to gain a broader perspective on each stock and the industry as a whole.
