U.S. President Donald Trump’s proposed "One Big Beautiful Bill (OBBBA)" has passed the Senate, raising the semiconductor tax credit rate to 35%. It is expected that Samsung and SK hynix, which are expanding in the U.S., will benefit as the subsidies related to the provisions remain unchanged.
According to foreign media such as Bloomberg on the 1st (local time), the OBBBA passed in the Senate, expanding the previously set semiconductor facility tax credit from 25% to 35%. This number has increased beyond the 30% initially proposed by the Republican party after the bill was referred to the Senate.
The tax credit applies to the previously enacted "Chips and Science Act" (hereafter referred to as the Semiconductor Act). Enacted in 2022, this law provides a 25% tax credit for semiconductor corporations on investments in facilities and equipment for operations starting after the end of 2022 and for facilities that begin construction before the end of 2026.
In addition to the tax credit for facility and equipment investments, direct subsidies ($39 billion) and loans (up to $75 billion) for semiconductor factory construction have also been included.
Currently confirmed as subsidy recipients are ▲Intel (U.S.) ▲TSMC (Taiwan) ▲Micron (U.S.) ▲Samsung Electronics (Korea) ▲SK hynix (Korea).
According to foreign news, President Trump initially sought to repeal the Semiconductor Act, but after strong opposition from legislators in districts where new investment projects were underway or planned, it was decided to maintain the law for now.
The bill also includes a provision to abolish the electric vehicle tax credit based on the Inflation Reduction Act (IRA), which is reported to be nearly identical to the bill that passed the House earlier.
The existing IRA set the termination date for the tax credit at the end of 2032; however, according to the current bill, it will end at the end of September.
While the bill has passed what was considered the biggest hurdle, the Senate, it has to undergo a revote in the House due to amendments. The Republican party intends to push through the process to ensure that President Trump can sign it by July 4, which is Independence Day in the U.S.