News US introduces act to add tax credits for chip designers, extends credits for chip production, too

[Admin]

The STAR Act extends the semiconductor manufacturing tax credit beyond 2026 and expands it to include research and development.

US introduces act to add tax credits for chip designers, extends credits for chip production, too : Read more

 

[bit_user]

It's all well and good to have chip design subsidies, but there is no scarcity either of chip designers or design centers, in the US. Where we have a critical shortage is in fab capacity and upstream supply chain. So, if you've only got a limited amount to spend on it, focusing that spending on the critical shortage is the smarter thing to do.

BTW, tax breaks are government spending by a different name. Anything which contributes to the budget deficit is effectively government spending.

 

[why_wolf]

Chip design is something the US already completely dominates. Total cash handout.

 

[DS426]

...

BTW, tax breaks are government spending by a different name. Anything which contributes to the budget deficit is effectively government spending.

Absolutely, and the federal government have used tax breaks for decades to mold and shape things in the direction they want things to go. EV tax credits are another great example. It's just a funny approach as -- just as you said -- it's less revenue later in favor of not paying upfront (although the CHIPS Act does include direct payments and government loans as well); a calculated interest savings on federal debt?

As for the CHIPS Act and President Trump, IMO, he favors American manufacturing strongly enough that he wouldn't try to make any major changes to it, and if anything, would extend it similar to this STAR Act.

 

[ezst036]

Another wonderful day for the lobbyists!

 

[OldAnalogWorld]

Unfortunately, the right policy will not lead to a rapid reduction in prices, which will inevitably rise due to new customs duties for China and other countries.

Customs duties should encourage the purchase of goods from local producers, equalizing the prices of their goods and foreign ones by subsidizing end consumers, not companies - only buyers have the right to decide which goods are really of the highest quality and which are not, which best meet their needs, and not Uncle Sam and the pseudo-capitalists sponsored by them, receiving non-market subsidies, they are a road to nowhere. Subsidies encourage corruption and a decline in the productivity of management and personnel and reduce competition in the market in reality.

Companies should work in market conditions within the country, as a minimum, since globally this becomes impossible due to massive subsidies everywhere.

I read that the Chinese authorities have started subsidizing mass demand. This is the right decision, but not by printing money, but by collecting customs duties from foreign producers. And the US and Europe should do the same. And then subsidies to local producers focused on exports to high-margin countries will lose their meaning - duties will eat up all the increased margin on high-paying clients in developed countries. And China will lose, because its society is less solvent for obvious reasons.
15-20 years and it will all be over for China. The rebuilt US, together with its key allies, just needs to stoically survive this period of deteriorating living standards for ordinary people, which needs to be explained to them as thoroughly as possible in advance, which none of the populists want to do now, and this leads to sad consequences...

 

[mikerahl]

It will be important for countries such as Canada (currently being attacked and having been attacked repeatedly by the US) to lock the US out of our raw materials that might be used for such manufacturing in the US since it won't benefit Canada in any way shape or form to be a supplier of those raw inputs. Instead, Canada should nationalize US corporate held tech patents and use them to build our own chip industry. The US is attacking Canada left and right of late, as well as constantly threatening to annex the country. Time to respond by locking the US out of all our raw minerals. Should put a damper in Trump's plans to harm everyone outside the US

 

[OldAnalogWorld]

I don't know about Mexico, it's a much less developed society with a different mentality than the US-Canada, but it's definitely more profitable for Canada to become a US state than to try to argue with them. You don't have a chance, you're too small in population (and consumers), you won't survive in the new dark world order.
I previously advocated that rather than feud with China over Taiwan, it would be easier to move all 5-7 million of the most developed population of the island to the US/Canada along with their families (this is several times less than all the illegal immigration to the US/Сanada over the past 10 years - only in this case, people with lower intellectual development most often end up in the US), which would only greatly increase the potential of North America. And leave Taiwan empty to China - let it do what it wants with its destroyed industry and without its human capital. In the end, people are more valuable than territory, especially developed people, and they should be lured to the country first and foremost. This is what the US has risen on for 250 years - the arrival of the most passionate layers and many scientists/engineers from all countries where they were not valued and there were less free societies.

 

[mikerahl]

I don't know about Mexico, it's a much less developed society with a different mentality than the US-Canada, but it's definitely more profitable for Canada to become a US state than to try to argue with them. You don't have a chance, you're too small in population (and consumers), you won't survive in the new dark world order.
I previously advocated that rather than feud with China over Taiwan, it would be easier to move all 5-7 million of the most developed population of the island to the US/Canada along with their families (this is several times less than all the illegal immigration to the US/Сanada over the past 10 years - only in this case, people with lower intellectual development most often end up in the US), which would only greatly increase the potential of North America. And leave Taiwan empty to China - let it do what it wants with its destroyed industry and without its human capital. In the end, people are more valuable than territory, especially developed people, and they should be lured to the country first and foremost. This is what the US has risen on for 250 years - the arrival of the most passionate layers and many scientists/engineers from all countries where they were not valued and there were less free societies.

Canada would never be admitted as a state, it would become a territory to abuse,, just like Puerto Rico. To ensure this does not happen, Canada needs to pull out of alliances with the US (not difficult, the US is doing it for us), withdraw support for the US dollar, and move to a neutral posture, being equally supportive of the BRICS block as we are of the US.

 

[bit_user]

As for the CHIPS Act and President Trump, IMO, he favors American manufacturing strongly enough that he wouldn't try to make any major changes to it,

That's not what he said.

"He also argued that government grants like the CHIPS Act are unnecessary and counterproductive and that companies should use their own resources to build fabs rather than rely on public funding."

Source: https://www.tomshardware.com/tech-i...t-tariffs-on-taiwan-made-chips-impacting-tsmc
​

He does like tax cuts, though. Maybe STAR is an attempt to get something through to slightly blunt the impact of CHIPS getting repealed.

 

[bit_user]

Canada would never be admitted as a state, it would become a territory to abuse,, just like Puerto Rico.

Stop worrying about that. It's not a serious threat. It's just meant to intimidate Canada, ahead of trade talks. Also, these over-the-top statements serve a role in distracting public attention from other things that are actually happening.

P.S. I like Canada. Whatever happens, I wish the best for you guys.

 

[why_wolf]

Canada would never be admitted as a state, it would become a territory to abuse,, just like Puerto Rico. To ensure this does not happen, Canada needs to pull out of alliances with the US (not difficult, the US is doing it for us), withdraw support for the US dollar, and move to a neutral posture, being equally supportive of the BRICS block as we are of the US.

Being friends with BRICS would be viewed as antagonistic ( B. Russia I. CHINA S.) Also would not be helpful as all those countries are raw resources countries, ie Canada's competition.

They'd be much better off, and have an easier time, cozying up to the EU. The EU is in serious need of raw materials that are from somewhere other than an actively invading nation (russia) or constantly on the verge of civil war (congo)