US Senators Suggest 25% Tax Credit For Semiconductor Chip Production Boost: Reuters

A bilateral group of U.S. senators proposed a 25% tax credit for semiconductor manufacturing investments, Reuters reported.
Last week, the Senate approved $52 billion for production and research on semiconductors and telecommunications equipment. The approval included $2 billion earmarked for auto chips which had to opt for production cuts due to the semiconductor chip crisis.
U.S. Commerce Secretary Gina Raimondo estimates the funding to lead to seven to 10 new U.S. semiconductor plants and generate over $150 billion in chip production and research investment, including state and federal governments and private-sector firms contribution.
The tax credit could benefit chipmakers like Taiwan Semiconductor Manufacturing Co Ltd TSM, NXP Semiconductors NV NXPI, Intel Corp INTC, and Micron Technology Inc MU.
TSM has initiated the $12 billion chip factory construction in the Arizona site.
The U.S. share of semiconductors and microelectronics production slipped from 37% in 1990 to 12 at present.
Foreign subsidies accounted for 70% of the cost difference for semiconductor overseas production.
Price action: INTC shares traded higher by 0.21% at $57.3 in the premarket session on the last check Friday.