The Creating Helpful Incentives to Protect Semiconductors Act (the CHIPS Act) was signed into law in August 2022, earmarking $52.7 billion in appropriations from 2023 through 2027 to bolster the U.S. semiconductor industry. Key developments since the Act’s passage include increased capital investment commitments from semiconductor companies in the United States, likely spurred by the Act’s provided incentives.
This legislative push was motivated by U.S. policymakers’ concerns over the country’s lagging position in the global semiconductor market, particularly compared to manufacturing hubs in East Asia such as South Korea, Taiwan, and China. To address these issues, the Act allocated up to $38.22 billion for financial incentives to build, expand, and equip U.S.-based semiconductor fabrication plants and related manufacturing facilities essential for the supply and value chain.
Furthermore, substantial grantmaking and investment activities by U.S. government agencies have been observed since the Act’s implementation, reflecting a proactive approach to reclaiming a competitive stance in semiconductor manufacturing. For a detailed examination of these developments, visit the original article.