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US Senators Propose Tax Credit of 25% For Manufacturing of Semiconductors

On Thursday, 17th June 2021, a group of senators of United States had proposed a tax credit of 25 percent for all the investments in the manufacturing of the semiconductors as the US Congress is working to increase the chip production in the United States.

The group of senators said, the proposal has been sponsored by Ren Wyden, chairman of Senate Finance Committee and Mike Crapo, top Republican Senator, along with four other senators, that is going to be providing the targeted and reasonable incentives to produce the semiconductor domestically.

The group of the senators does not respond immediately to a request for an estimation of cost for the measure, that has currently been on the top of the recent funding for the semiconductor in the country. In the previous week, the senate has approved 52 billion dollars for the research and production of the semiconductors and equipment required for the telecommunications, which also includes 2 billion dollars, that is dedicated to the chips, which are generally used by the automobile producers, that have experienced large shortages.

The supporters for the funding also said that, the share of United States of the production of microelectronics and semiconductors has been decreased to 12 percent from 37 percent in the year 1990, and the senators also said that, around 70 percent of the cost difference for the production of the semiconductors in the abroad countries have been resulting from the foreign subsidies.

Ren Wyden said, the United States of America cannot allow the governments of the foreign countries to continue in luring the oversees manufacturing companies, that have been increasing the risk to their economy.