When Samsung secured billions in U.S. CHIPS Act funding to expand its semiconductor operations in Texas, it sent a clear message to global investors: America is not just open for business—it actively rewards foreign-backed firms that bring jobs, technology, and capital to U.S. soil. In 2025, federal and state agencies continue to allocate over $200 billion in grants, tax credits, and incentives tied to manufacturing, clean energy, R&D, and workforce development. For international companies entering the U.S. for the first time, understanding how these incentives work—and who qualifies—can determine whether expansion is merely possible or truly profitable.
Understanding What the U.S. Really Offers Foreign Businesses
Foreign-owned companies often underestimate how accessible U.S. incentives truly are, assuming that programs like the CHIPS Act, the Inflation Reduction Act (IRA), or state-level grants are designed only for domestic firms. In reality, major U.S. incentive programs actively welcome foreign investors, provided the project is set up through a U.S.-registered entity and complies with national security conditions. The real barrier isn’t foreign ownership — it’s avoiding classification as a Foreign Entity of Concern (FEOC), a restriction that applies mainly to companies tied to certain adversarial countries. This is why firms from Japan, South Korea, Germany, and other allied nations have secured billions of dollars in U.S. federal and state support for semiconductor plants, clean-energy manufacturing, EV battery facilities, and other strategic projects.
While the U.S. does not operate on a single unified “performance-driven economic model,” most federal, state, and local incentive programs do rely on performance metrics. These targeted programs award benefits based on the tangible economic impact a project creates. For business incentives, eligibility often depends on factors such as capital expenditure on U.S. facilities and equipment, creation of American jobs, strengthening domestic supply chains, and commitments to workforce development or innovation. These performance-based conditions apply especially in high-priority sectors like semiconductors, EV batteries, clean energy, hydrogen, and advanced manufacturing, where grants and tax credits are tied to measurable outcomes rather than company nationality.
Federal programs offer a broad mix of grants, tax credits, loan guarantees, and production-based credits, especially in priority sectors such as semiconductor fabrication, hydrogen, clean energy, EV batteries, and biopharma. Meanwhile, state and local governments compete aggressively for foreign direct investment by offering customized incentive packages — including multi-year property tax abatements, R&D credits, payroll rebates, utility rate reductions, expedited permitting, and infrastructure assistance.
The core principle is simple: U.S. incentives are not based on nationality — they are based on economic contribution. If a foreign company builds in the U.S., hires American workers, and supports strategic supply chains, it can qualify for many of the same incentives available to U.S.-owned companies.
How Foreign Firms Can Strategically Position Themselves to Qualify
To secure high-value U.S. incentives, foreign investors must follow a structured approach that aligns with federal and state program requirements. First, companies need to conduct eligibility mapping, as each program has precise definitions regarding ownership, corporate structure, and sector focus. For instance, CHIPS Act funding targets semiconductor fabs, packaging plants, and supply-chain clusters; DOE grants prioritize clean energy, hydrogen hubs, and grid modernization; and many state economic development offices require pre-approval before breaking ground. Second, investors should perform economic impact modeling, demonstrating the projected benefits of their project. Governments evaluate factors such as the number of U.S. jobs created, capital expenditure plans, partnerships with local suppliers, and long-term contributions to regional economic development. This is why major foreign entrants, including BMW, Toyota, and Siemens, prepare detailed workforce and investment roadmaps before negotiating incentive packages. Third, companies must focus on compliance structuring, ensuring they meet federal requirements for programs like the Inflation Reduction Act, which may include prevailing wage payments, apprenticeship participation, and domestic content sourcing. Firms that integrate these considerations early into budgeting and planning significantly increase their chances of approval. A strong real-world example is SK Innovation’s EV battery plant in Georgia, where careful coordination with state agencies on workforce partnerships, apprenticeship programs, and supplier localization helped the company unlock one of the Southeast’s largest incentive packages.
Implementation: Timelines, Compliance & Navigating Red Tape
Foreign-backed companies often encounter predictable hurdles when pursuing U.S. incentives, including confusion over which programs require U.S. majority ownership, complex compliance rules for clean-energy credits, tight application timelines for federal grants, and challenges in accurately projecting job creation. Many companies also struggle with understanding the different requirements at federal, state, and local levels, which can vary significantly depending on the sector and the type of incentive. The key to overcoming these obstacles is early sequencing and structured planning. Companies should begin by forming a U.S.-registered entity, registering for relevant state tax IDs, and establishing detailed payroll and workforce plans that align with incentive requirements. Only after these foundational steps should firms submit incentive applications and finalize investment commitments. Premature construction, procurement, or hiring can lead to disqualification from critical programs, wasting both time and capital. Additionally, firms should maintain clear documentation, track all performance metrics tied to incentives, and monitor regulatory updates to ensure ongoing compliance. By taking a disciplined, step-by-step approach, foreign companies can navigate red tape effectively, meet program requirements, and maximize the likelihood of successfully obtaining grants, tax credits, and other financial support for their U.S.-based projects.
Samsung’s CHIPS Funding & Texas Incentive Package
Samsung’s semiconductor expansion in Texas provides a clear example of how a foreign-backed firm can successfully secure substantial U.S. incentives. The company qualified due to a multibillion-dollar capital investment, creation of thousands of local jobs, strong support for the domestic semiconductor supply chain, and commitments to workforce training in collaboration with local universities. As a result, Samsung received multi-billion-dollar federal funding under the CHIPS Act, loan guarantees, and extensive local incentives from the City of Taylor and Williamson County, including property tax abatements, infrastructure support for roads and utilities, and workforce development programs. The key takeaway for foreign investors is that Samsung’s incentives were not awarded because it is a Korean company, but because it delivered measurable economic benefits to the U.S.. Any foreign firm—whether headquartered in Seoul, Berlin, London, or Bengaluru—can potentially access similar support if its U.S. project meets performance-based criteria and contributes to local economic growth.
Sectors Where Foreign Companies Are Securing the Biggest Incentives in 2025
In 2025, foreign-backed firms are accessing high-value incentives across priority sectors including semiconductor manufacturing, EV battery production, hydrogen and clean energy, solar panel manufacturing, biomedical research and biomanufacturing, logistics and advanced manufacturing, and data centers/cloud infrastructure. These sectors are prioritized due to U.S. government goals such as reshoring critical supply chains, advancing green energy and decarbonization targets, and strengthening domestic technological capabilities. Investors focusing on these sectors can position themselves for the most significant grants, tax credits, and state-level support.
The push for reshoring and supply-chain diversification is driving demand in these areas, making it an opportune time for foreign investors to establish or expand U.S.-based operations. Companies targeting these sectors stand a strong chance of securing significant federal, state, and local incentives if they align with economic and workforce development goals.
Practical Guide — U.S. Incentive Qualification Toolkit
Use this toolkit before engaging with federal or state agencies:
Incentives Toolkit
- U.S. entity formation checklist: Step-by-step guide to legally establish your U.S. subsidiary.
- State-by-state eligibility matrix: Compare incentives, grants, and tax credits across different states.
- Workforce planning template: Track jobs created, wages, and apprenticeship partnerships for compliance.
- Capital expenditure modeling sheet: Map investments in land, equipment, and facilities to incentive criteria.
- Federal grant application timeline: Manage deadlines for DOE, CHIPS, SBA, and NSF funding programs.
- Domestic content compliance checklist: Ensure projects meet local sourcing requirements for tax credits.
- Prevailing wage & apprenticeship guide: Align labor practices with Inflation Reduction Act and other regulations.
- Incentive negotiation executive summary: Summarize project metrics for presentations to federal or state agencies.
- Post-award reporting & compliance calendar: Track reporting requirements and maintain eligibility after incentives are awarded.
What Foreign Firms Must Know: New Rules, New Money, New Opportunities
In 2025, several federal and state agencies issued updated guidance that directly impacts foreign-backed firms seeking U.S. incentives. Key updates include CHIPS Act award documentation requirements, IRS rules on prevailing wages and apprenticeship programs tied to clean-energy tax credits, domestic content standards for renewable energy projects, and changes in state-level incentive caps and new manufacturing grant cycles. These developments mean that foreign investors must plan earlier, structure their U.S. subsidiaries carefully, and align operations with the updated compliance and performance requirements to maximize eligibility for high-value grants, tax credits, and other support.
Unlocking U.S. Incentives: Your Next Steps
Foreign-backed firms have a tremendous opportunity to leverage U.S. business incentives and grants, but success depends on strategic planning, compliance, and a deep understanding of both federal and state programs. By establishing a U.S.-registered entity, aligning with performance-based criteria, and carefully sequencing applications, companies can maximize funding, tax credits, and other support. CrossVentura’s advisory services guide foreign investors through every stage—from entity formation and incentive mapping to workforce planning and post-award compliance—ensuring that your U.S. expansion is both profitable and fully aligned with local regulations. Don’t leave incentives on the table; take the first step toward unlocking U.S. opportunities today.
