The government of Taiwan has recently passed their own chip act which allows companies developing processing chips to get tax deductions from the research and development costs of the equipment needed to manufacture these important components.
With the passage of Taiwan's chip act, companies developing and manufacturing chips can use 25 percent of new technology research costs as tax deductions and 5 percent of the cost of purchasing processing chip manufacturing equipment, which is typically the most expensive cost for these operations.
The chip act also says that this tax deduction is limited to 50 percent, but so far there is no time limit, as long as this research and development takes place within the country.
This happened after it was shown that countries such as the United States and Germany have begun to discuss with companies such as TSMC and Intel to develop their factories in those countries as a measure to ensure that the supply of processing chips for various industries is not interrupted. that occurred during the COVID-19 outbreak.
Taiwan is seen as wanting to maintain its position as the world's most advanced semiconductor chip producer, and with these measures has ensured that they maintain that status.