Taiwan Passes Its Chips Act With Tax Credits for Chipmakers (1)

Taiwanese lawmakers have passed new rules that let local chip firms turn 25% of their annual research and development expenses into tax credits, part of efforts to keep cutting-edge semiconductor technologies at home and maintain the island’s technology leadership.

Officials there have repeatedly said they will ensure the latest chip technologies remain in Taiwan, a point that has been reaffirmed by executives at Taiwan Semiconductor Manufacturing Co. and other local chip giants. While Taiwan’s assisted local chipmakers in the past with infrastructure construction and other measures, the island is now stepping up its efforts.

Shares of TSMC and United Microelectronics ...