TSMC backs tax credit extension, Intel defends overseas supply chain

As the public comment window for the U.S. Section 232 semiconductor probe closed in early May, tension simmered across the chip industry—many feared that the lack of public response could increase the chances of steep tariffs. But, according to data released by the Bureau of Industry and Security on May 21, two semiconductor heavyweights—TSMC and Intel—did weigh in, each with a distinct angle.

As highlighted by TechNews, TSMC’s statement to the U.S. Commerce Department focused on six key points, especially calling to exempt existing chip investments and avoid tariffs on finished products.

In contrast, PCMag notes that Intel takes a broader stance, urging the government to protect not only U.S.-made wafers but also those made using U.S. technology and IP—while also seeking tariff relief for overseas-made chip equipment in its supply chain.

TSMC: Urges extension for tax credit
After unveiling its $165 billion US investment—including three advanced fabs, two packaging plants, and a major R&D center—TSMC said the Arizona project could generate hundreds of billions in semiconductor value for AI and cutting-edge tech, with over $200 billion in economic impact in the US. The letter adds the site will account for about 30% of TSMC’s global capacity for 2nm and beyond, enough to meet US demand.

Therefore, in its statement, TSMC uses relatively strong language, saying that any measures adopted should “DO NO HARM” to US government security policy goals, including TSMC Arizona’s advanced chip production.

According to TechNews and the Commercial Times, the statement highlighted six key recommendations: exempt existing semiconductor investments, maintain supply chain access, avoid tariffs on finished products, extend tax credits for advanced manufacturing, simplify permitting, and support talent development cooperation.

The reports highlight TSMC’s recommendation for the Trump administration to use tax laws to strengthen US semiconductor manufacturing. The company urges extending the advanced manufacturing investment credit (IRC §48D), which is set to expire on December 31, 2026, claiming that this is crucial for continuing the development of its GIGAFAB cluster.

Moreover, TSMC also supports the Building Advanced Semiconductors Investment Credit (BASIC) Act, introduced by Representative Claudia Tenney (R-NY), which proposes raising the credit from 25% to 35% and extending it through 2030, the reports add.

Intel’s broader ask: Protect US tech, not just US-made chips
Notably, Intel took a slightly different stance, stressing the need to “protect American manufactured semiconductor wafers and derivative products,” according to PCMag. This echoes Intel’s own message on its website, which touts its upcoming 18A node—set to enter production in the second half of 2025—as the first sub-2nm advanced node to be made in North America.

Moreover, the report notes that Intel warned rising tariffs are driving foreign buyers away from US chips, stressing the need to exempt products with US-made semiconductors from these costs—a point that echoes TSMC’s call to avoid tariffs on finished goods.

However, what also stands out will be that Intel urged the Trump administration to exempt not only wafers made in the US, but also those produced using US-based technologies and intellectual property, implying the company also seeks tariff relief for its supply chain, including chip-making equipment developed overseas, like that of ASML, as per Tom’s Hardware.

-- TrendForce, Taiwan.