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New US Bill to Relieve Challenges in Semiconductor Industry

In the wake of COVID-19 global pandemic and an unattractive growth momentum of world economy, a group US based lawmakers have recently made way for a new bill that is likely to grant over approximately $22.8 billion to revive several semiconductor companies that would eventually help in reinforcing favorable advances and subsequent growth in the construction of chip components across most of America to offset the challenges posed by biter trade relations with China that has been around for quite some time now.
Semiconductor chip making can be a massive investment and can lead to enormous expenditure worth millions, the bulk of which is dedicated to complicated tools and devices that find rampant adoption in chip making. This latest development of the passing of a new bill is aimed at substantially reducing the burden by offering approximately 40% income tax which is refundable credit dedicated to most of semiconductor tools and equipment. The break-up of the proposed bill is intended to make up for $10 bn as federal funding and $12 bn as R&D expeditions which collectively would aid in reviving and also construction new factories and initiate favorably paced workflow to revive the semiconductor industry in the US.
The funding is proposed to be used under the protocols of Defense Production Act the aim of which is to establish and improvise local semiconductor production capabilities to compete against China. Although US still owns several companies who are frontline providers of chips for use in semiconductor industry, the supply is starkly deficient and the US is needs to depend upon Asia countries for a steady chip supply. Leading US based companies such as Intel Corp and Micron Technology remain ahead as top suppliers of chips, however, the companies are lagging behind Asia based companies such as Taiwan Semiconductor Manufacturing Co. which is at a better stance to continue a stable and reliable chip supply chain.