Chip stocks gain after larger tax credits in Trump’s ‘Big Beautiful Bill’

The latest version of U.S. President Donald Trump’s “Big Beautiful Bill” may make it cheaper for semiconductor makers to set up facilities in the U.S., boosting the Trump administration’s efforts to bolster local chip production.

Under the bill, passed by the Senate on Tuesday, tax credits for those semiconductor companies would increase to 35% from 25%. This is more than the 30% that was seen in a draft version of the bill.

Companies such as Intel (NASDAQ:INTC), Taiwan Semiconductor Manufacturing (NYSE:TSM) and Micron Technology (NASDAQ:MU) could be eligible for the credits, if they could break ground on new facilities before an existing 2026 deadline.

The new provisions build on tax incentives under the Biden administration’s 2022 CHIPS and Science Act, which gave grants of $39B and loans of $75B for American semiconductor manufacturing projects.

House lawmakers would now take up the legislation with an objective of sending it to Trump for getting his assent by July 4.

So far, the Trump administration has secured increases in promised investment from TSM, Micron and GlobalFoundries (NASDAQ:GFS). Last month, GlobalFoundries said it was working with the Trump administration to invest $16B in its two U.S. facilities. Meanwhile, Micron expanded its fabrication and research and development plans in the U.S. to $200B. In March, TSM announced a $100B investment in the U.S. over the next four years.

Chip stocks on Wednesday:

Shares of Intel fell about 3%. Earlier in the day, it was reported that its new CEO Lip-Bu Tan is weighing potentially ending the marketing of its 18A chipmaking technology to new clients in an effort to woo bigger customers.

TSM climbed about 3%, Micron rose about 1%, while GlobalFoundries was largely flat on Wednesday.

AI chipmakers Nvidia (NVDA) jumped about 3%, while Advanced Micro Devices (AMD) rose around 2%. Broadcom (AVGO) was up nearly 2% and Qualcomm (QCOM) up around 1%.

Lattice Semiconductor (LSCC) and Marvell Technology (MRVL) each jumped about 3%, Texas Instruments (TXN) rose around 2%, while Analog Devices (ADI) was up nearly 1%.

Meanwhile, chip equipment makers: Applied Materials (AMAT) and KLA (KLAC) rose about 2% each, while Dutch company ASML (ASML) and Lam Research (LRCX) were each up about 1%.