Investment in 5 trillion yen in semiconductors, what is the next U.S. policy?

🟩25% reduction in semiconductor capital investment

A bill in the U.S. Senate to give semiconductor manufacturing investments a 25 percent tax credit has been introduced by bipartisan lawmakers.

The FABS bill ”Facilitating American- Built Semiconductors Act” provides tax breaks for companies that invest semiconductor manufacturing facilities in the United States.

Wyden, Crapo, Cornyn, Warner, Daines, Stabenow Introduce Bill to Boost Domestic Manufacturing of Semiconductors | The United States Senate Committee on FinanceWyden, Crapo, Cornyn, Warner, Daines, Stabenow Introduce Billwww.finance.senate.gov

A policy separate from investment in the 5 trillion yen semiconductor industry

The U.S. plans to invest USD 52 billion (approximately 5 trillion yen) in semiconductor manufacturing and R&D. The bill submitted this time will be added to this 5 trillion yen investment.

“25% tax credit is an incentive for semiconductor manufacturing in the United States”

🟩 Aiming to return semiconductor production to the U.S.

The U.S. share of global chip production is now 12 percent, down from 37 percent in 1990. On the other hand, most of the world’s chips are designed by U.S. companies. Moving chip production back to the U.S. will create high-paying jobs and investments.

🟩 U.S. was reluctant to incentivize

Cutting-edge fabs cost more than US$10 billion (Â¥1 trillion). That’s why companies like Intel and TSMC build fabs outside the United States, including Israel, Ireland and Taiwan. Because you get a lot of incentives from the local government.

Manufacturing semiconductors outside the U.S. is less expensive, but 70 percent of the cost difference comes from subsidies. The U.S. government has been reluctant to offer incentives in the past, but this bill could change that.

Possibility of application to companies outside the U.S.

Not only U.S. companies such as Intel and Micron, but also Taiwan’s TSMC and NXP, which have semiconductor factories in the United States, are expected to be targeted.

🟩Summary

The next U.S. policy is to create employment and investment by returning to the U.S. for the purpose of reducing the semiconductor
capital investment tax

Japan semiconductor makers are unlikely to benefit, but Japan semiconductor equipment makers may benefit from expanding into the U.S.

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