chips act
The **CHIPS and Science Act** (2022) is US legislation providing **52.7 billion USD** in funding to boost domestic semiconductor manufacturing, research, and workforce development in response to supply chain and national security concerns.
**Funding Breakdown:**
- **39 billion USD**: Manufacturing incentives (grants for fab construction and expansion)
- **11 billion USD**: R&D programs (NIST-led research, National Semiconductor Technology Center/NSTC, advanced packaging institute)
- **2 billion USD**: Defense and intelligence community chips
- **500 million USD**: International coordination and supply chain security
**Investment Tax Credit:**
- 25% advanced manufacturing investment tax credit for semiconductor equipment and facility costs.
**Key Award Recipients:**
- **Intel**: 8.5 billion USD for Ohio, Arizona, Oregon, New Mexico fabs
- **TSMC**: 6.6 billion USD for Arizona fab complex
- **Samsung**: 6.4 billion USD for Taylor, TX fab
- **Micron**: 6.1 billion USD for New York and Idaho memory fabs
- **GlobalFoundries**: 1.5 billion USD for New York fab expansion
**Guardrails:**
- Cannot use funds to expand capacity in China or other countries of concern for 10 years
- Excess profits clawback provisions
- Workforce and childcare requirements
- Environmental review
**NSTC:**
- National Semiconductor Technology Center for pre-competitive research, prototyping, and workforce training.
**Economic Rationale:**
- US share of global chip production fell from 37% (1990) to 12% (2022)—CHIPS Act aims to reverse decline.
**Complementary Legislation Globally:**
- **EU Chips Act**: €43B
- **Japan**: Subsidies
- **Korea**: K-Chips Act
- **India**: Semiconductor incentives
**Impact Assessment:**
- Expected to catalyze 300-400 billion USD total private-public investment in US semiconductor manufacturing over the decade.
- Represents the largest US industrial policy investment in a single sector in decades.