Chipmakers are likely to benefit from the ‘One Big Beautiful Bill Act’ passed by the Senate on Tuesday, as they will be eligible for an investment tax credit that can incentivize the semiconductor business.
What Happened: According to the provisions of the tax cut bill proposed by President Donald Trump, the Big Beautiful Bill aims to temporarily increase an investment tax credit for semiconductor manufacturers till the end of 2026.
It would raise the tax credit to 30% of investments in manufacturing facilities, from the current 25%, providing stronger incentives for companies to expand domestic production.
Trump was initially critical of the Chips and Science Act, which granted awards worth $32.5417 billion and provided loans up to $5.85 billion to 32 companies, as per the Semiconductor Industry Association.
However, Trump set up a new entity, the United States Investment Accelerator, within the Commerce Department, which now oversees the CHIPS Act program, as established by an executive order signed by him.
The Big Beautiful Bill has now gone back to the House after narrowly passing in the Senate, before the President could finally sign it to make it into a law.
These are the top chipmakers and the existing beneficiaries of the Chips Act that will benefit from this investment tax credit mentioned within the tax cut bill.
| Company Stocks | YTD Performance | One-Year Performance |
| Nvidia Corp. NVDA | 13.69% | 22.58% |
| Broadcom Inc. AVGO | 16.35% | 56.08% |
| Intel Corp. INTC | 8.21% | -29.94% |
| Qualcomm Inc. QCOM | 5.65% | -20.36% |
| Advanced Micro Devices Inc. AMD | 14.83% | -15.49% |
| Applied Materials Inc. AMAT | 15.95% | -21.91% |
| Taiwan Semiconductor Mfg. Co. Ltd. TSM | 2.35% | 11.34% |
| Intel Corp. INTC | 8.21% | -29.94% |
| Texas Instruments Inc. TXN | 15.32% | 8.37% |
| Micron Technology Inc. MU | 39.40% | -11.02% |
| Microchip Technology Inc. MCHP | 28.62% | -21.82% |
| Analog Devices Inc. ADI | 15.99% | 6.58% |
| Coherent Corp. COHR | -12.16% | 19.63% |
| Corning Inc. GLW | 12.87% | 37.22% |
| Entegris Inc. ENTG | -11.08% | -38.54% |
| Globalfoundries Inc. GFS | -6.90% | -22.05% |
See Also: Bill Gates Is Betting Two-Thirds Of His Foundation’s Portfolio In These 3 Stocks
Why It Matters: On March 4, during his joint address to Congress, Trump said, “Your Chips Act is a horrible, horrible thing.”
He also urged U.S. House Speaker Mike Johnson to “get rid” of it and use “whatever is left over” to “reduce debt or any other reason you want to.”
However, the Trump administration has skipped repealing the act with the Investment Accelerator entity and even managed to get the semiconductor firms to invest in the U.S. over and above the Chips Act this year.
In early March, Taiwan Semiconductor Manufacturing Co. Ltd. TSM revealed its plans to inject $100 billion into U.S. advanced semiconductor manufacturing, significantly expanding its ongoing $65 billion Arizona initiative under the Chips Act and bringing total investment to $165 billion.
Apple Inc. AAPL has committed over $500 billion to U.S. investments, focusing on AI, silicon engineering, and expanding advanced manufacturing.
Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, edged higher on Wednesday. The SPY was up 0.45% at $620.45, while the QQQ advanced 0.70% to $550.80, according to Benzinga Pro data.
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