[News] U.S. Senate Reportedly Eyes 35% Tax Credit for New Chip Fabs, Boosting TSMC, Intel and Samsung

Though it remains unclear if or how the Trump administration will pursue chip tariffs, Bloomberg suggests the Senate has passed major tax legislation that delivers a big win for chipmakers. The bill raises the investment tax credit for new U.S. semiconductor plants from 25% to 35%—exceeding the previously proposed 30%, which is set to benefit companies like Intel, TSMC, Samsung and Micron that have pledged major U.S. investments, the report adds.

Notably, chipmakers will qualify if they begin construction before the 2026 deadline, according to Bloomberg. With Senate approval already secured, the House is pushing to pass the bill by July 4 and send it to Trump for final sign-off, the report says.

The increased credit, if proved to be true, could enhance a key incentive from the 2022 bipartisan CHIPS and Science Act, signed by former President Biden. As per Bloomberg, the program also offers $39 billion in grants and up to $75 billion in loans to revive U.S. chip manufacturing after years of offshoring to Asia.

As Bloomberg notes, the tax credit will make up the largest share of federal support for most chipmakers—even those without grants. To encourage momentum, companies that start projects by the end of 2026 can still claim credits as long as construction continues, Bloomberg indicates.

Chip Giants’ Made-in-U.S. Progress Recap

Among chipmakers investing in the U.S., TSMC stands out as the most aggressive, with a clear and ambitious pipeline. According to its website, TSMC plans to invest up to $165 billion in the U.S., including six chip fabs, two advanced packaging plants, and an R&D center in Arizona.

According to Commercial Times, TSMC’s second Arizona fab (P2) is set to begin equipment installation as early as Q3 2026, with mass production slated for 2027. Its third Arizona fab, as per the Economic Daily News, had already broke ground in April, 2025.

Samsung, on the other hand, reportedly resumed cleanroom construction at the Taylor site in Q2 2025, as per ZDNet. The company is discussing plans to begin installing equipment for its 2nm process at the Taylor fab in 2026, the report adds.

Meanwhile, Intel’s Fab 52 and Fab 62 in Arizona are already operational and expected to begin producing 18A chips soon. While its Ohio plant has delayed completion to 2030, construction is underway—making it eligible for the new tax credit.

U.S. memory giant Micron, on the other hand, unveiled a $200 billion expansion plan to boost domestic manufacturing, which includes a second fab in Boise. The company expects to start DRAM wafer production in its first Idaho fab, ID1, in the second half of 2027, while the groundbreaking of its $100 billion mega fab in New York is now delayed to late November or December 2025, according to syracuse.com.

Read more

• [News] TSMC’s 2nd Arizona Fab Reportedly to Install 3nm Gear in 3Q26, U.S. Price Hikes Likely over 10% Next Year
• [News] Can Global Fab Expansion Keep Up with Micron’s HBM Surge? Timeline Update from U.S., Japan & India
• U.S. to Hold Over 20% of Advanced Semiconductor Capacity by 2030, TSMC Expands Investment to US$165 Billion, Says TrendForce

(Photo credit: TSMC)