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How latest version of Donald Trump's ‘big beautiful bill' may be ‘next big win' for Intel, TSMC and Micron
How latest version of Donald Trump's ‘big beautiful bill' may be ‘next big win' for Intel, TSMC and Micron

Time of India

time8 hours ago

  • Business
  • Time of India

How latest version of Donald Trump's ‘big beautiful bill' may be ‘next big win' for Intel, TSMC and Micron

US President Donald Trump US President Donald Trump 's latest legislative push aims to significantly incentivise semiconductor manufacturers to build plants in the country, further bolstering Washington's efforts to strengthen its domestic chip supply chain. The bill, which the Senate passed on Tuesday (July 1), proposes increasing tax credits for eligible semiconductor firms from 25% to 35%. This marks an even larger increase than the 30% that appeared in a prior draft. Chipmakers like Intel , Taiwan Semiconductor Manufacturing Company ( TSMC ) and Micron Technology may all benefit from these enhanced credits, provided they expand their advanced manufacturing capabilities in the US before a 2026 deadline. It is to be noted that these new provisions build upon the existing tax incentives established by the 2022 CHIPS and Science Act, which included $39 billion in grants and $75 billion in loans for US-based semiconductor manufacturing projects. Trump's approach to chips: Beyond CHIPS Act grants Since his first term, Trump has pursued policies to bring more of the advanced semiconductor supply chain back from Asia, bolster domestic players and curb China's technological capabilities. While the tax provisions in his new bill expand on those in the Biden administration's CHIPS Act, Trump's overall strategy for the semiconductor industry has diverged. Earlier this year, the President even called for a repeal of the CHIPS Act, though Republican lawmakers have shown reluctance to act on that front. Nonetheless, US Commerce Secretary Howard Lutnick recently indicated that the administration is renegotiating some of the Biden administration's existing grants. In recent months, several major chipmakers with US projects have ramped up their planned investments in the country, including TSMC, Nvidia, Micron and GlobalFoundries.

Commentary: Why Putrajaya Should Deepen Its Ties With The White House
Commentary: Why Putrajaya Should Deepen Its Ties With The White House

BusinessToday

time16 hours ago

  • Business
  • BusinessToday

Commentary: Why Putrajaya Should Deepen Its Ties With The White House

As the global order undergoes a profound reconfiguration driven by technological competition, supply chain shifts, and digital transformation, Malaysia finds itself at a crossroads. It can either remain a peripheral actor in the emerging global technology architecture or assert itself through deliberate, strategic partnerships. Among these, its relationship with the United States warrants deeper engagement. Contrary to outdated perceptions of alignment politics, closer ties with the United States today offer Malaysia an avenue to strengthen its position in key sectors such as semiconductors, artificial intelligence (AI), and cultural and educational exchange. This is not merely a matter of foreign policy optics—it is a pragmatic response to structural shifts in the global economy. Malaysia plays a pivotal role in the global semiconductor supply chain. With approximately 7% of global trade in semiconductors passing through the country, Malaysia is not a marginal contributor but an essential node—particularly in backend processes such as assembly, testing, and packaging. American semiconductor giants including Intel, Broadcom, and Texas Instruments have long-standing operations in Malaysia, particularly in Penang and Kulim. These operations have generated employment, contributed significantly to national exports, and created ancillary ecosystems of suppliers and talent. However, global trends suggest that this position cannot be taken for granted. The United States is increasingly reconfiguring its semiconductor supply chains under the CHIPS and Science Act, investing heavily in domestic capacity while simultaneously seeking dependable international partners for resilience and redundancy. Malaysia must proactively present itself as one of those trusted partners. Deepening engagement with the U.S. in the semiconductor sector could involve expanding bilateral investment, establishing more advanced manufacturing capacities, and encouraging joint research initiatives. The move from being a base for low-cost assembly to becoming a site for high-value semiconductor design and innovation should be a strategic policy objective. This requires not only capital investment but also policy alignment in intellectual property protections, trade facilitation, and talent development. The United States remains one of the most technologically advanced countries in the world, and Malaysia has the opportunity to benefit from a transfer of knowledge, capital, and credibility by working more closely with American firms and institutions. Beyond semiconductors, artificial intelligence represents the next frontier of economic transformation. The U.S. leads the world in AI development, hosting the most advanced large language models, machine learning algorithms, and AI infrastructure. Companies such as Google, Microsoft, Meta, and Nvidia are not only commercial entities but research engines that shape the global discourse on AI ethics, safety, and innovation. Malaysia, which has identified AI as a national priority through its National Artificial Intelligence Roadmap (2021–2025), stands to gain from direct collaboration in this area. Strategic engagement with U.S. institutions could include university-level research partnerships, AI workforce development programs, and policy coordination on digital governance. In this respect, Malaysia must move beyond a passive adoption of foreign technology and toward co-creation. Joint ventures and research consortia with American universities and firms would accelerate Malaysia's domestic capacity to develop and deploy AI solutions in key sectors such as healthcare, education, agriculture, and urban planning. This also creates pathways for Malaysian talent to gain exposure to frontier research and for the country to contribute to the shaping of global AI norms. Furthermore, participating in discussions on AI ethics and data governance through U.S.-led international platforms would help ensure that Malaysia is not merely a consumer of global standards but an active contributor to their formation. Cultural and educational engagement between Malaysia and the United States has long been a quiet strength of the bilateral relationship. Thousands of Malaysian students have studied in the U.S., often returning with skills, perspectives, and networks that enrich domestic institutions. American cultural diplomacy—through centers, exchanges, and educational programs—has contributed to soft power influence that complements economic and technological cooperation. In an increasingly interconnected world, this dimension of the relationship is more important than ever. Investing in people-to-people ties helps build the trust and familiarity needed to support more complex partnerships in business and governance. Expanding these engagements should be a deliberate policy goal. Increasing the number of Malaysian scholarships tied to science, technology, engineering, and mathematics (STEM) fields at U.S. universities could directly benefit the country's industrial ambitions. Encouraging institutional partnerships in areas such as public health, green technologies, and public policy could also generate shared research outputs and policy innovation. Additionally, fostering platforms for civil society, youth leadership, and entrepreneurship exchanges can serve to embed bilateral cooperation across layers of society—not just at the governmental or corporate level. By Pravin Periasamy, Networking and Partnership Director of Malaysian Philosophy Society Related

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

CNBC

time18 hours ago

  • Business
  • CNBC

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

The latest version of U.S. President Donald Trump's "big beautiful bill" could make it cheaper for semiconductor manufacturers to build plants in the U.S. as Washington continues its efforts to strengthen its domestic chip supply chain. Under the bill, passed by the Senate Tuesday, tax credits for those semiconductor firms would rise to 35% from 25%. That's more than the 30% increase that had made it into a draft version of the bill. Companies eligible for the credits could include chipmakers such as Intel, Taiwan Semiconductor Manufacturing Company and Micron Technology, provided that they expand their advanced manufacturing in the U.S. ahead of a 2026 deadline. The new provisions expand on tax incentives under the 2022 CHIPS and Science Act, which provided grants of $39 billion and loans of $75 billion for U.S.-based semiconductor manufacturing projects. 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. Since 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 provisions in Trump's sweeping policy bill expand on those in the Biden administration's CHIPS Act, his overall approach 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. Still, U.S. Commerce Secretary Howard Lutnick said last month that the administration was renegotiating some of the Biden administration's grants. Trump has previously stated that tariffs, as opposed to the CHIPS Act grants, would be the best method of onshoring semiconductor production. The Trump administration is currently conducting an investigation into imports of semiconductor technology, which could result in new duties on the industry. In recent months, a number of chipmakers with projects in the U.S. 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 tech advisory firm Futurum Group, the threat of Trump's tariffs has created more urgency for semiconductor companies to expand U.S. capacity. 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.S. 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.S.-based projects.

Struggling Semiconductor Firm Wolfspeed Files for Bankruptcy
Struggling Semiconductor Firm Wolfspeed Files for Bankruptcy

Mint

time2 days ago

  • Business
  • Mint

Struggling Semiconductor Firm Wolfspeed Files for Bankruptcy

(Bloomberg) -- Wolfspeed Inc., a chipmaker caught in President Donald Trump's push to reshape Biden-era tech subsidies, filed bankruptcy to enact a creditor-backed plan to slash $4.6 billion in debt. The North Carolina-based company filed petitions for reorganization under Chapter 11, according to a statement released on Monday. It expects to emerge out of bankruptcy by the end of the third quarter, it said. The filing marks one of the largest bankruptcies so far this year, behind only Brazilian airline Azul SA and satellite company Ligado Networks, according to data compiled by Bloomberg. A restructuring agreement is supported by a majority of holders of its senior secured notes, its convertible debtholders and Renesas Electronics Corp., a major customer in Japan, the company said. The company expects to further focus on 200mm silicon carbide wafer manufacturing, Robert Feurle, Wolfspeed's chief executive officer, said in a statement. Just days prior to the filing, Wolfspeed said it had struck a restructuring deal and intended to file Chapter 11. Wolfspeed, which makes semiconductors, has been in discussions with lenders including Apollo Global Management Inc. on its debt load, and sought to refinance convertible bonds due next year. The chipmaker has said it will cut bond debt and a loan from Renesas by swapping that debt for equity in the reorganized company. Short sellers, bearish investors who make money when a stock declines, have piled into Wolfspeed this year as the company's woes snowballed. In the past few months, Wolfspeed announced changes to its management team and had warned of the prospect of a bankruptcy, saying that it had hired advisers to help address its debt load. To expand production, the firm won a $750 million award last year from the federal government under the CHIPS and Science Act, which had been backed by former President Joe Biden. But since Trump took office in January, his administration has been reworking many of the awards. Wolfspeed has only collected part of the money and has been locked in negotiations with the administration about the award, according to a regulatory filing. --With assistance from Dorothy Ma. More stories like this are available on

The Transnational Origins of Taiwan's Semiconductor Industry
The Transnational Origins of Taiwan's Semiconductor Industry

The Diplomat

time2 days ago

  • Business
  • The Diplomat

The Transnational Origins of Taiwan's Semiconductor Industry

Donald Trump's self-proclaimed 'victory' in his chip war against Taipei is premised on a fundamental misunderstanding of how we got to where we are. TSMC Chairman and CEO C.C. Wei (right) speaks while U.S. President Donald Trump looks on during a joint announcement of a new $100 billion TSMC investment in the United States, Mar. 3, 2025. Nowhere is the logic of U.S. President Donald Trump's trade policy more obviously flawed than his attempt to reshore semiconductor manufacturing to the United States. Following Trump's March claim that Taiwan 'stole' its chip industry from the U.S. and his suggestion that Taipei should pay for American protection, Taiwan Semiconductor Manufacturing Company announced a further $100 billion investment in its Arizona plant. Flanked by TSMC Chairman C.C. Wei at a White House meeting, Trump touted the investment – which will reportedly add new wafer fabs, advanced packaging facilities, and an R&D center to existing infrastructure – as ensuring the 'most advanced AI chips' would now be manufactured in the United States. Commerce Secretary Howard Lutnick said it was proof that Trump's tariff policy was bringing manufacturing and investment back to America. Yet neither of these statements is tenable. At best, the Arizona plant will turn out 3-nanometer chips by 2028, a level Taiwan reached in 2022. For each incremental improvement in the United States and elsewhere, you can be sure Taiwan will have moved commensurately several steps ahead. Echoing the views of industry experts, the Danish policy analyst Jonas Parello-Plesner, a former diplomat stationed in Washington during Trump's first term, has written of his confidence that 'the holy grail' of cutting-edge chips will remain in Taiwan. Based on his conversations with policymakers in Taiwan, there is no way Taipei is relinquishing its silicon shield. As for the idea that the chips industry will 'return' to U.S. shores at any substantive level, few see this as feasible. First there's the obvious issue of cost. 'Making chips at scale in the U.S. is obviously going to be more expensive,' says Honghong Tinn, author of 'Island Tinkerers,' a social history of Taiwan's computer and semiconductor industry. 'So, they would probably need huge subsidies,' continues Tinn, who is also an assistant professor in the Program in the History of Science, Technology, and Medicine and the Department of Electrical and Computer Engineering at the University of Minnesota, Twin Cities. In fact, a subsidy of at least $6.6 billion was already in place under the CHIPS and Science Act (often shortened to the CHIPS Act), a bipartisan law passed under the Biden administration in 2022. The act oversaw the first stage of TSMC's Arizona plant, with $65 billion invested to establish the initial fabs at the site. While the precise details are murky, many analysts have argued that further investments in and development of the site were covered by the initial agreement reached under the law. Absent any details to differentiate it from the provisions and deals that were already in place under the CHIPS Act, there is no indication of how the Trump administration intends to bring back chip manufacturing to the United States. 'Trump's decisions show not only that he doesn't trust foreign countries, including Taiwan, but also that he doesn't understand his own Silicon Valley that well,' says Chang Kuo-hui, a professor and research fellow at National Taiwan University's Graduate Institute of National Development.

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