Taiwan looks to boost its chipmakers with sweeter tax breaks

TSMC and others stand to gain from credits for R&D and capital spending

Taiwan Semiconductor Manufacturing Co., the world's top contract chipmaker, is expected to benefit from the incentives. © Reuters

YU NAKAMURA, Nikkei staff writer

November 18, 2022 02:09 JST

TAIPEI -- Taiwan's executive branch approved draft legislation Thursday to add and increase tax credits for semiconductor and other high-tech manufacturing, looking to further widen the sizable lead enjoyed by the island's chipmakers.

A credit for research and development would rise to 25% of such spending from the current 15%, while a 5% credit would be introduced for capital investment. They would apply to cutting-edge research and advanced equipment.