Taiwan Offers Lucrative Tax Breaks To Beef Up Its Cutting Edge Semiconductor Technology Position - Taiwan Semiconductor (NYSE:TSM)

Taiwan proposed more significant tax breaks for technology companies' research and development (R&D), seeking to retain its leading position in semiconductor manufacturing.
The economy ministry said Taiwan must remain competitive as countries including the U.S., Japan, and South Korea step up tax breaks and subsidies for their chip industries in the wake of significant disruption in global supply chains, Reuters reported.
The proposal coincided with an amendment to a statute on industrial innovation, raising the corporate income tax break to 25% from 15%.
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The island is home to the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Company Ltd TSM, with hundreds of other firms.
Taiwan's government has pledged to keep its most advanced chip manufacturing at home but has supported some companies like TSMC to build new factories in the U.S. and Japan, both strong international backers of Taiwan.
In August, the U.S. passed a landmark $52.7 billion Chips and Science Act to increase its competitiveness with China and decrease its reliance on manufacturers in Taiwan and South Korea.
The European Commission this year also proposed a 45 billion euros ($46.6 billion) chip plan.
Price Action: TSM shares traded higher by 2.98% at $81.82 on the last check Thursday.