Nvidia, Intel, Broadcom, Micron, AMD And Other Chipmakers Stand To Benefit As Trump's Tax Bill Increases Incentives To Make Semiconductors In US

Chipmakers are likely to benefit from the ‘One Big Beautiful Bill Act’ passed by the Senate on Tuesday, as they will be eligible for an investment tax credit that can incentivize the semiconductor business.

What Happened: According to the provisions of the tax cut bill proposed by President Donald Trump, the Big Beautiful Bill aims to temporarily increase an investment tax credit for semiconductor manufacturers till the end of 2026.

It would raise the tax credit to 30% of investments in manufacturing facilities, from the current 25%, providing stronger incentives for companies to expand domestic production.

Trump was initially critical of the Chips and Science Act, which granted awards worth $32.5417 billion and provided loans up to $5.85 billion to 32 companies, as per the Semiconductor Industry Association.

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However, Trump set up a new entity, the United States Investment Accelerator, within the Commerce Department, which now oversees the CHIPS Act program, as established by an executive order signed by him.

The Big Beautiful Bill has now gone back to the House after narrowly passing in the Senate, before the President could finally sign it to make it into a law.

These are the top chipmakers and the existing beneficiaries of the Chips Act that will benefit from this investment tax credit mentioned within the tax cut bill.

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Why It Matters: On March 4, during his joint address to Congress, Trump said, "Your Chips Act is a horrible, horrible thing."

He also urged U.S. House Speaker Mike Johnson to "get rid" of it and use "whatever is left over" to "reduce debt or any other reason you want to."

However, the Trump administration has skipped repealing the act with the Investment Accelerator entity and even managed to get the semiconductor firms to invest in the U.S. over and above the Chips Act this year.

In early March, Taiwan Semiconductor Manufacturing Co. Ltd. TSM revealed its plans to inject $100 billion into U.S. advanced semiconductor manufacturing, significantly expanding its ongoing $65 billion Arizona initiative under the Chips Act and bringing total investment to $165 billion.

Apple Inc. AAPL has committed over $500 billion to U.S. investments, focusing on AI, silicon engineering, and expanding advanced manufacturing.

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