Chipmakers get larger tax credits in Trump’s latest ‘big beautiful bill’

Under President Donald Trump's "big, beautiful bill" passed by the Senate, tax credits for semiconductor firms building capacity in the U

Companies eligible for the credits could include chipmakers such as Intel, Taiwan Semiconductor Manufacturing Company and Micron nology

President Donald Trump (right) and C

Bloomberg | Bloomberg | Getty ImagesThe version of U

President Donald Trump's "big beautiful bill" could make it cheaper for semiconductor manufacturers to build plants in the U

As Washington continues its efforts to strengthen its domestic chip supply chain

Companies eligible for the credits could include chipmakers such as Intel, Taiwan Semiconductor Manufacturing Company and Micron nology, vided that they expand their advanced manufacturing in the U

But before the expanded credits come into play, Trump's sweeping domestic policy package will have to be passed again in the House, which narrowly passed its own version last month

The president has urged lawmakers to get the bill passed by July 4

Trump versus BidenSince Trump's first term, Washington has been trying to onshore more of the advanced semiconductor supply chain from Asia, support its domestic players and limit China's capabilities

Although tax visions in Trump's sweeping policy bill expand on those in the Biden administration's CHIPS Act, his overall apach to the semiconductor industry has been different

Earlier this year, the president even called for a repeal of the CHIPS Act, though Republican lawmakers have been reluctant to act on that front

Commerce Secretary Howard Lutnick said last month that the administration was renegotiating some of the Biden administration's grants

Watch now5:2605:26The chip industry wants more clarity around policymaking, says 'Chip War' author Chris MillerSquawk BoxTrump has previously stated that tariffs, as opposed to the CHIPS Act grants, would be the best method of onshoring semiconductor duction

The Trump administration is currently conducting an investigation into imports of semiconductor nology, which could result in new duties on the industry

In recent months, a number of chipmakers with jects in the U

Have ramped up planned investments there

That includes the world's largest contract chipmaker, TSMC, as well as American chip companies such as Nvidia, Micron and GlobalFoundries

According to Daniel Newman, CEO at advisory firm Futurum Group, the threat of Trump's tariffs has created more urgency for semiconductor companies to expand U

If the increased investment tax credits come into law, those onshoring efforts are only expected to accelerate, he told CNBC. "Given the risk of tariffs, increasing manufacturing in the U

Remains a key consideration for these large semiconductor companies," Newman said, adding that the tax credits could be seen as an opportunity to offset certain costs related to U. -based jects.