Taiwan Reportedly Preparing a Domestic Version of CHIPS Act, To Reveal More Details on Thursday


Suppose you are following the inside of the semiconductor industry. In that case, you must be aware of the United States CHIPs act, where the US government plans to invest billions of dollars into domestic companies to boost the production of semiconductors devices on American soil. However, it seems like the Biden administration isn’t the only governing body that realizes the importance of making semiconductors that power everything from entertainment to government, as Taiwan is supposed to announce a similar act for Taiwanese semiconductor makers like TSMC, MediaTek, GlobalWafers, UMC, etc. to simulate additional manufacturing and development on Taiwanese soil.

On Thursday, the Taiwanese government is expected to announce a 25% tax cut for research and development efforts of companies manufacturing their chips on the domestic playground. In addition to this tax deduction, Taiwan also plans to impose an additional 5% tax break on equipment purchasing, so companies like TSMC and GlobalWafers that purchase leading-edge equipment will be enjoying a healthy 30% smaller tax bill. This money is a Taiwanese way of creating additional funds for R&D purposes so these companies can bolster their CapEx with additional funds. We await to see what will happen tomorrow and update this story with more information as the official act gets announced.