Semiconductors are critical components that form the foundation of virtually all modern technologies and industries, including computers, smartphones, consumer electronics, automobiles, and medical devices. Their global importance continues to grow. This blog provides an overview of recent legal developments in the semiconductor markets of Japan and the United States.

On Friday, July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act, making permanent many of the tax provisions enacted under the 2017 Tax Cuts and Jobs Act (TCJA). An initial draft of the legislation was passed by the U.S. House of Representatives on May 22, 2025 (the Original House Bill). Winston & Strawn’s prior alert regarding key provisions of the Original House Bill can be found here. A revised version of the Original House Bill (the Final Bill) was passed by the U.S. Senate on July 1, 2025, and after overcoming opposition from certain members of the Republican Party, the House voted on July 3, 2025, along party lines, to send the Final Bill to President Trump for signature.

California’s Climate Accountability Package (the CAP) requires large public and private companies doing business in California to disclose their greenhouse gas emissions and mandates that certain companies publicly report on their climate-related financial risks and the measures they are taking to address those risks. Recent amendments have left implementation timelines largely unchanged. While legal challenges to the CAP continue and final guidance has not yet been published, companies should prepare to comply as the regulatory environment evolves.