Taiwan passes 'Chips Act', offers tax credits to local chipmakers

Governments from US to Seoul have been offering incentives for domestic chip production, in hopes of reducing a reliance on Taiwan for advanced semiconductors and avoiding future supply disruptions

Taiwanese lawmakers have passed new rules that let local chip firms turn 25% of their annual research and development expenses into tax credits, part of efforts to keep cutting-edge semiconductor technologies at home and maintain the island’s technology leadership. 
 

Officials there have repeatedly said they will ensure the latest chip technologies remain in Taiwan, a point that has been reaffirmed by executives at Taiwan Semiconductor Manufacturing Co. and other local chip giants. 

While Taiwan’s assisted local chipmakers in the past with infrastructure construction and other measures, the island is now stepping up its efforts.

“As the United States, Japan, South