Taiwan, China, China, passes the revised draft of chip regulations, SEMI: affirms and supports, which will help the development of local industries
28 August 2023
On this (17th) day, the administrative department of Taiwan, China, China, formally adopted the revised draft of Article 10-2 and Article 72 of the Industrial Innovation Ordinance, which apply new tax preferences to companies that are technologically innovative and occupy a key position in the international supply chain to invest in forward-looking innovative R&D and advanced process equipment.
The economic department of Taiwan, China, China, said that this amendment aimed at companies with technological innovation and a key position in the international supply chain, and provided 25% of prospective innovation R&D expenditure to offset the profit making enterprise income tax payable in the current year, and 5% of the expenditure on the purchase of new machines or equipment for advanced manufacturing processes to offset the profit making enterprise income tax payable in the current year, and there was no upper limit for the expenditure on such machines or equipment, The total amount of the two deductions shall not exceed 50% of the profit seeking enterprise income tax payable in the current year.
As soon as the new draft was issued, all major semiconductor enterprises and institutions in Taiwan, China region of China responded or made statements one after another. According to the Taiwan Media Economic Daily, SEMI International Semiconductor Industry Association said in a statement that it affirmed and supported the administrative department to go on the road through the revised draft of the Industrial Innovation Ordinance. The substantial benefits provided by the Ordinance, such as R&D investment credits and tax concessions, will help to plant the momentum of development of Taiwan, China's semiconductors industry, enhance international competitiveness, and become a strong backing for the industry.
In addition, Cao Shilun, SEMI's global marketing chief and president of Taiwan, China, also said that under the pressure of fierce international competition and geopolitical influence, this industrial policy will help consolidate the key position of Taiwan, China's semiconductor industry in the global supply chain, and hopes that the semiconductor industry will continue to improve its global leading edge, and drive more other related industries in Taiwan, China to go to the international market and expand their territory, Make greater contributions to the economic development of Taiwan, China, China, and jointly create prosperity.
On the same day, TSMC, the leader of wafer foundry, said that it would continue to invest in Taiwan, China, China, and was pleased with the success of this bill. Liandian said that although the revised draft of the Production and Innovation Ordinance has set a threshold, it is still uncertain whether it is applicable, but the direction of the revision is to encourage enterprise R&D and innovation, which is quite positive. Therefore, it is optimistic about its success and will continue to invest in advanced special processes. MediaTek said that it is still understanding the details of the relevant laws, and hopes that in the future, the details of the relevant laws will have supporting measures for semiconductor design and manufacturing to meet different needs.
The economic department of Taiwan, China, China, said that this amendment aimed at companies with technological innovation and a key position in the international supply chain, and provided 25% of prospective innovation R&D expenditure to offset the profit making enterprise income tax payable in the current year, and 5% of the expenditure on the purchase of new machines or equipment for advanced manufacturing processes to offset the profit making enterprise income tax payable in the current year, and there was no upper limit for the expenditure on such machines or equipment, The total amount of the two deductions shall not exceed 50% of the profit seeking enterprise income tax payable in the current year.
As soon as the new draft was issued, all major semiconductor enterprises and institutions in Taiwan, China region of China responded or made statements one after another. According to the Taiwan Media Economic Daily, SEMI International Semiconductor Industry Association said in a statement that it affirmed and supported the administrative department to go on the road through the revised draft of the Industrial Innovation Ordinance. The substantial benefits provided by the Ordinance, such as R&D investment credits and tax concessions, will help to plant the momentum of development of Taiwan, China's semiconductors industry, enhance international competitiveness, and become a strong backing for the industry.
In addition, Cao Shilun, SEMI's global marketing chief and president of Taiwan, China, also said that under the pressure of fierce international competition and geopolitical influence, this industrial policy will help consolidate the key position of Taiwan, China's semiconductor industry in the global supply chain, and hopes that the semiconductor industry will continue to improve its global leading edge, and drive more other related industries in Taiwan, China to go to the international market and expand their territory, Make greater contributions to the economic development of Taiwan, China, China, and jointly create prosperity.
On the same day, TSMC, the leader of wafer foundry, said that it would continue to invest in Taiwan, China, China, and was pleased with the success of this bill. Liandian said that although the revised draft of the Production and Innovation Ordinance has set a threshold, it is still uncertain whether it is applicable, but the direction of the revision is to encourage enterprise R&D and innovation, which is quite positive. Therefore, it is optimistic about its success and will continue to invest in advanced special processes. MediaTek said that it is still understanding the details of the relevant laws, and hopes that in the future, the details of the relevant laws will have supporting measures for semiconductor design and manufacturing to meet different needs.
