To boost U.S. chip production, a group of senators has put forward a proposal that creates scope for a 25% tax credit for investment in semiconductor manufacturing.

The proposal was supported by Ron Wyden, chairman of the Senate Finance Committee, Mike Crapo, Mark Warner, Debbie Stabenow, John Cornyn and Steve Daines.

It mentioned that it would create “reasonable, targeted incentives for domestic semiconductor manufacturing,” and the Semiconductor Industry Association praised the proposal, saying that it would “strengthen domestic chip production and research, which are critical to U.S. job creation, national defense, infrastructure, and semiconductor supply chains.”

Companies likely to benefit from the report include Taiwan Semiconductor Manufacturing, Dutch chipmaker NXP Semiconductors NV and U.S. firms such as Intel Corp and Micron Technology.

For more information, read the original story in Reuters.