[Global Times Special Correspondent Chen Lifei] In order to ensure Taiwan's semiconductor industry's leading position in the world, Taiwan's "Executive Yuan" passed an amendment to the "Industrial Innovation Regulations" known as the "Taiwan version of the Chip Law" on the 17th, and will then send it to the "Legislative Yuan". deliberate.

According to Taiwan media, major semiconductor manufacturers such as TSMC and MediaTek will have the opportunity to apply in the future.

　　The draft amendment stipulates that companies that carry out forward-looking technological innovation on the island and occupy a key position in the international supply chain meet the "applicable qualification conditions", and 25% of their expenditures on forward-looking innovation research and development can be deducted from the profit-seeking enterprise income tax payable in the current year Amount, 5% of the expenditure for the purchase of advanced equipment is offset against the income tax of the current year's profit-seeking enterprise, and there is no upper limit for the amount of investment offsetting expenditure.

However, the total amount of a single investment credit shall not exceed 30% of the tax amount of the current year, and the two simultaneous applications shall be limited to 50% of the tax amount.

　　Taiwan's "United Daily News" gave an example, assuming that a company's forward-looking innovation R&D expenditure in 2023 is 10 billion yuan (NT$, the same below), and the investment in advanced process machinery and equipment is 15 billion yuan, the tax payable before offsetting is 6 billion yuan.

If the company complies with the regulations, of the 10 billion yuan of R&D expenditure, although it can enjoy a 25% discount, because the company should pay 30% of the business income tax, that is, only 1.8 billion yuan can be included in the deduction, so the R&D project enjoys 18% discount. billions of dollars in discounts.

In addition, of the 15 billion yuan in equipment expenditures, the 5% tax discount for machinery and equipment is 750 million yuan.

That is to say, the company's forward-looking innovation R&D expenditure plus machinery and equipment expenditures can enjoy an investment deduction of 2.55 billion yuan (1.8 billion yuan + 750 million yuan) in 2023.

　　In response to this news, TSMC stated that it will continue to invest in Taiwan, and is optimistic about the success of this bill.

Wu Tianyu, CEO of ASE Semiconductor, a subsidiary of ASE Group, also said that in the next ten years, the semiconductor industry will face greater challenges. Under the global high subsidies and multiple regulations, competition will be more difficult.

The industry is optimistic about the revision of the "Regulations on Industry and Innovation" this time, but the actual impact remains to be seen in the details of the regulations and supporting measures.

Huang Chongren, chairman of PSMC, said in an interview that the authorities took care of the goodwill of Taiwan's semiconductor industry through equipment investment deduction. It seems that it only wants to provide subsidies for TSMC or a few equipment manufacturers.

　　Taiwan's "China Times" quoted analysts on the 17th as saying that the authorities' introduction of relevant subsidy policies will benefit the competitiveness of semiconductor manufacturers on the island. However, the current semiconductor inventory adjustment and the capacity utilization rate of mature processes have declined significantly. Affected, so hold a neutral view on related stocks.

　　Another analysis believes that the DPP authorities are vigorously supporting the semiconductor industry. On the one hand, they hope to build "protecting the sacred mountain" and "protecting the mountains". Taiwan is safe.

Public opinion is worried that Taiwan's highly concentrated semiconductor industry may suffer from the "Dutch disease", which means that high technology has been thriving for a long time, and industrial development is uneven, which will accelerate the development of an M-shaped society and further widen the gap between rich and poor on the island.

　　(Source: Global Times)