US wants to give global chipmakers a 25% tax credit on new fabs

Leading foundry operators stand to benefit from a 25 percent investment tax credit (ITC) on domestic fab projects, according to a document published by the US Department of Commerce this week. The document [PDF] sheds new light on the department's plans for divvying up the more than $50 billion CHIPS Act fund approved this …

[tekHedd]

"...foreign manufacturers aren't excluded from receiving funding"

And there it is. They can say whatever you want after this, we know what it really means.

We were planning to do this one thing in the US anyway; now the US govt will fund our other projects... elsewhere...

"FUNGIBLE" somebody needs to give our leaders a dictionary.

[DS999]

Re: "...foreign manufacturers aren't excluded from receiving funding"

Well we want TSMC & Samsung fabs here, but they could have made the money only for "projects that have not previously been announced" and no announced projects can be canceled or scaled back if they accept it.

[amanfromMars 1]

Hmmm?

US wants to give global chipmakers a 25% tax credit on new fabs

Plus $39 billion in subsidies for 'domestic' effort that will welcome foreign semiconductor players

Is that sort of incentive also what is commonly known as a bung or a bribe? Are those not usually touted as being illegal/unlawful with one liable to be prosecuted to the full extent of the law and incarcerated in a penal institution?

[amanfromMars 1]

Re: Hmmm?

Oops! .... here’s another barbed wire string attached which doesn’t do anyone wanting to help Uncle Sam any favours ..... https://www.theregister.com/2022/09/07/taking_chips_act_money_no/

Level playing fields? Oh please, you can’t expect to win win for crooks on those fair terms and conditioned grounds, can you.

[EnviableOne]

Re: Hmmm?

WTF AMFM makes sense

This is ripe for an illegal state aid claim against Intel

[Auntie Dix]

Billions Squandered

What enormous free gifts at taxpayer expense to businessmen who neither deserve nor need them!

This is what happens when legislators have a sudden priority, a no-cost-to-them treasure chest, lobbyist pressure (perhaps, with paybacks due), and a lack of negotiation know-how.

[Lordrobot]

Taxpayers so hungry they could eat a FAB PLANT... Murica is back...

$52 Billion not enough?...Wait There's more... 39 Billion in Federal Tax Credits... You could build a factory with free gov loans... No interest and most will be forgiven....rent out that building and pay no income taxes... That's what FOXCONN is doing. Remember the $10 billion panel factor to employ 15,000 workers? And they are your friends from TAIWAN!

Wait... there's more...

States and local gov are offering tax-free incentives... Imagine no property taxes for the next 100 years. You could rent out the building to the homeless and never pay property taxes again....

Does the Chips Act require actual Chips FAB production to get these deals? Absolutely NOT. Remember FOXCONN

Did FOXCONN ever build a single LCD panel... NOPE... They are going to set up a data centre and they are renting out their two sweetheart manufacturing buildings...

Trump was there at the FOXCONN groundbreaking... What a great day of celebration that was... Murica is back...

[StrangerHereMyself]

Home turf

Why is everybody talking about "global chipmakers" since this is really all about TSMC.

Everybody wants the company to set up shop on their home turf so we should simply put sharp political pressure on both Taiwan and TSMC to force them to set up shop in both the U.S. and Europe. If subsidies will make it more palatable for them, that''ll be fine, just hand them the money.